"Peep" slow

Saturday night's 8 p.m. performance of Peepshow played to an audience one might describe as "pitiful." If the auditorium was even half-full, I'll eat my hat. Planet Hollywood has got to be beseeching the heavens that the curiosity/trainwreck factor of adding Holly Madison will get bums in the seats and that Shoshana Bean will keep them coming back. We're talking wing + prayer, folks.

Rump faction: Mel B. with the star of Peepshow.

If you've not seen "original cast" Peepshow, I'll confine myself for now to two observations: A) it's a 75-minute tribute to Mel B.'s derriere — which is admittedly spectacular — and; B) Kelly Monaco has the easiest paycheck in show business. Her once — and future? — General Hospital costar Nancy Lee Grahn was sitting in front of us.

As star sightings go, that wasn't quite up there with Rita Rudner taking in Sunday night's performance of Patti LuPone: The Gypsy in My Soul at The Orleans. If a meteorite had, God forbid, fallen on the Orleans Showroom, Las Vegas' gay community would have been annihilated. The same projectile could strike Peepshow and miss all four spectators in attendance.

Posted in Boyd Gaming, Entertainment, Planet Hollywood, The Strip, TV | Comments Off on "Peep" slow

A-Yem to the rescue

“No corporate liposuction.” With those words, new Tropicana Las Vegas CEO Alex Yemenidjian not only coined the catchphrase of the year, he implicitly repudiated the policies of forerunner William J. Yung III, whose Columbia Sussex modus operandi was to solve all problems by sacking large numbers of employees, stripping out amenities, raising prices, slashing marketing and decimating advertising budgets. (A super-stupid policy, it turns out, as revenues and cash flow at at least three of four former Aztar Corp. casinos plummeted under Yung’s reign of error.)

A-Yem’s approval hearing with the Nevada Gaming Commisson was marred only by a senior moment from Commissioner John Moran Jr. According to the Las Vegas Sun, Moran “applauded Yemenidjian’s efforts and recalled playing golf at a course near the Tropicana, adding that he hopes new management will be able to return the property to its glory days.”

WTF? Is Moran flashing back to the Tropicana golf course that used to be in back of the old Marina Hotel and was cannibalized by MGM Grand? Or maybe the Dunes Golf Course across the street? That was more than 10 years ago, dude, and what’s it got to do with the price of tea in the Trop? Is he suggesting A-Yem put in some links? The only ones you could fit into the current Trop site are the putt-putt kind — not that there’s anything wrong with that.

Yemenidjian’s $440 million debt-for-equity swap effectively reprices the Trop at $12.9 million/acre … possibly even less depending on how great of a discount Onex Corp. obtained on that debt.

Kudos to NGC Chairman Peter Bernhard (pictured) for crafting a sensible solution to the problem of licensing Las Vegas Gaming CEO Jon Berkley. Both the new CEO and his company have been stumble-prone, so Bernhard’s provisional one-year license is a prudent compromise, giving Berkley just enough rope to either hang himself or prove that he’s the Mr. Fixit his lawyer says he is. As for Las Vegas Gaming, it’s where your phone call rolls over when you dial up …

… the Ensign scandal’s casino connection. Over at the Las Vegas Gleaner, Hugh Jackson has unearthed “the forgotten Ensign,” brother Bill, onetime COO of Nugget Gaming, a company with a remarkable development slate. When S&G rang up Nugget’s executive offices on Ali Baba Lane, we got Las Vegas Gaming instead. Neither Bill Ensign nor Nugget CEO Stephen Crystal were to be found on the voice-mail directory either.

Crystal was the chief huckster for Barrick Gaming, an underfunded company that fronted Lichtenstein-based Tamares Group‘s stealthy acquisition of six downtown Las Vegas casinos, before vanishing in a cloud of insolvency. During my early months at the Las Vegas Business Press, I quickly learnt to take Crystal’s public pronouncements cum grano salis. (Well, he was an ex-politician, after all.)

Helpfully, the Nugget Gaming site actually provides old news clippings that show just how hilariously full of it Crystal and front man D.W. Barrick were. A former colleague who had a ringside seat for Barrick Gaming’s licensing told me that Nevada regulators were desperate and convinced themselves the (wholly unrelated) Barrick Gold Corp. fortune stood at Mr. Barrick’s back. As the Barrick/Crystal house of cards was collapsing, I called Toronto-based Barrick Gold spokesman Vince Borg for comment. He’d never heard of Barrick Gaming. So much for that.

DINO? Not as in “Martin,” sadly. Reporter Dennis Myers breaks down why casino executives and other bidness bigwigs are lining up behind Sen. Harry Reid (D-NV). Yes, this is the same Reid the Las Vegas Review-Journal routinely and hysterically calls “socialist.” Then again, the R-J thinks anybody to the left of Grover Norquist is a pinko.

Posted in Alex Yemenidjian, Columbia Sussex, Current, Downtown, Election, Entertainment, Labor, Regulation, Tamares Group, The Strip | Comments Off on A-Yem to the rescue

Harrah’s Azov?

Bloomberg News reports the following: Harrah’s Entertainment, the world’s biggest casino company, may build a resort on the Azov Sea, Vedomosti reported Tuesday.

Harrah’s may join U.S. construction company Asati in building a complex in Azov-City, one of four gambling zones planned in the country, Vedomosti said, citing Asati founder Alex Kogan.

The resort, which will include a casino, hotels and conference centers, will cost between $50 million and $100 million, Kogan said.

Wow! Try building a U.S. resort — or even a Macanese one — for so little money. I’ve asked Harrah’s for confirmation but have yet to hear back. Although several overseas ventures have gone belly-up, the company continues to persist.

However … despite the Russian government’s decree that all casinos be moved to special zones, scattered around the far reaches of the empire, little headway has been made: “One Russian publication sent a reporter to check out progress on one of the zones, who discovered open fields filled with grazing cows.” The Azov-City project, for one, has a long way to go.

And how is Harrah’s/Asati going to build a casino for $100 million or less? One word: tents. “Several foreign investors have begun preparatory work, including the Austrian company Asati. The company plans to build on the 20 hectares of inflatable structures, area of 100 thousand square meters,” explains one investment site, “… the inflatable structure can be a casino and a water park and the congress hall. In addition to inflatable structures Asati company intends to build a 17-storey hotel and 34 bungalows.”

If there’s to be gambling under a big top, I’d suggest they call the place Circus Circus, but Jay Sarno got there first. Potential feeder markets for “Harrahs’ Azov” would include Kiev and Odessa, but the closest major city appears to be Stalingrad … er, Volgograd.

Yung & the restless: Closer to home, in Kentucky, the grand vizier of Columbia Sussex, CEO William J. Yung III, is loaning out the corporate locomotive for charitable causes. Company locomotive? No, we’re not making this up.

Restiveness marks the labor situation at one of the distant outposts of Yung’s hotel empire. Both in the slow pace of negotiations and the demand for employee give-backs, it’s very reminiscent of the scrumdown that was the Culinary Union/ColSux stalemate of two years back. At least Scott Butera intervened to make peace before it reached the point of a Tropicana Las Vegas boycott.

Small beer? Just what Resorts International in Atlantic City needs … more regulatory problems. C’mon, guys. We hook up beer kegs all the time here at LVA. It’s not rocket science. Then again, it’s difficult to “misunderestimate” Colony Capital.

Posted in Alaska, Atlantic City, Charity, Colony Capital, Columbia Sussex, Culinary Union, Harrah's, International, Regulation, Tropicana Entertainment | 1 Comment

Case Bets: Our LVA mascot; Menopause; Mob museum

Woe betide anyone who dares to plunder LVA HQ, for we are under the protection of a fierce — but beautiful — watch iguana. Mojo, as she is named, is at this moment sunning herself on the balcony of my office. The photo above shows Mojo in her customary habitat: a massive iguana "condo" that takes up nearly half of one of the downstairs offices.

As cushy as her lifestyle may be, Mojo occasionally gets cabin fever and either rampages around the research department or attacks her "evil twin" in the mirror. Watch your head if you're coming in the front door; Mojo recently leapt off the second-floor balcony in pursuit of (we presume) some fat, juicy pigeons and suffered no injury whatsoever. She's one tough little hombre.

Menopause The Musical: I don't mean it pejoratively when I say that if you like this sort of thing, then this is the sort of thing you'll like. Either you get the joke(s) or you don't. It's that simple.

Oscar Goodman's pet project, the so-called "Mob museum" just got whacked, albeit not fatally … we think.

Posted in Animals, Downtown, Entertainment, MGM Mirage, Oscar Goodman, Pets, The Mob | Comments Off on Case Bets: Our LVA mascot; Menopause; Mob museum

MGM: Deal or no deal?

MGM Mirage CEO Jim Murren is re-mulling asset sales of MGM Grand Detroit, Gold Strike (Tunica, Miss.) and Beau Rivage. But all Strip assets are definitively off the market (yes, even Slots A Fun). Since the Detroit and Tunica casinos are already encumbered with CityCenter-related debt, presumably Murren would transfer those mortgages to some or all of the “Mandalay mile.” As far as I know, those three casinos are still unencumbered. The Detroit resort would be a real “trophy asset” for any potential buyer … presuming that banks are more inclined to lend than they were(n’t) the last time Murren shopped this trio around.

The Las Vegas Review-Journal took a good look at MGM’s Giza deal — and it’s even better than initially thought. Not only will the company collect management and franchise fees, it also gets a cut of any profits. If there’s a downside here, I’m too myopic to see it.

MGM wouldn’t sell Monte Carlo when Jack Binion came calling. One presumes this had more to do with potentially being able to extend CityCenter into Monte Carlo, rather than Jack’s money not being good enough for MGM. However, if the company really cares about the property, Continue reading

Posted in Baseball, Detroit, Downtown, Economy, International, Jack Binion, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, MGM Mirage, Mississippi, Politics, Sheldon Adelson, Steve Wynn, The Strip | Comments Off on MGM: Deal or no deal?

Macao” rises again?

Block out the shopworn, mostly useless generalities coming from Las Vegas Sands and groove to Macao's scintillating casinos, recoil from its thick blanket of smog, and take some heart from Credit Suisse's prediction of an upturn in VIP play in the Chinese casino protectorate.

A contemporaneous Australian TV report — which can't be embedded, alas — was even more striking, especially in the stunning contrast between the sleek architectural beauty of Melco Crown International's new flagship, City of Dreams, and the fugliness of Sheldon Adelson's nearby monoliths. Cheers to Melco Crown for bringing a needed infusion of taste to the Cotai Strip™.

Posted in Architecture, Economy, Environment, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, Sheldon Adelson, TV, Wall Street | Comments Off on Macao” rises again?

Scratch one Europoseur

Hot off the wire from Harrah’s Entertainment: “The visionary force behind Club Fuego, ND, has opted to close the nightclub in order to pursue future projects in other formats. The closure is effective today [June 15].”

Durr: Friends don’t let friends become Europoseurs

This mouthful of fulsome flattery requires a bit of translation. “ND” is the pretentious moniker chosen by Nicole Durr. The German impresario garnered a small but fawning following during her latest Vegas stint. She also was credited with conception, creation, writing, direction, producing, musical conception, co-composition, costume design, co-choreography, co-program design and photography for Raw Talent Live.

The latter was a mercifully short-lived Cirque du Soleil wannabe that ran at the Sahara and looked like what you’d get if you let Franco Dragone run riot with a budget of $17.95. Centering upon “The Laptop of Life” (don’t ask), this incomprehensible mishmash — I believe the operative German word is Scheisse — featured among its dramatis personae one “Miss Conscience Guilt,” who presumably was dropping in from The Land of Babelfish.

Not only did Raw Talent Live have the miniscule distinction of being the single worst Vegas show I have ever seen, it was memorable in another respect: It used prerecorded applause. Either that or the theater was full of invisible people the night I saw Raw Talent, because there were probably fewer spectators than cast members.

In an effort to keep this Esperanto-flavored flub afloat, it was renamed Fuego Raw Talent Live, then just Fuego. But adding or subtracting words from the marquee provided no solution to an addle-pated concept.

That lesson went unlearnt when Ms. Durr set up shop over at The Rio. Posters on the property gaseously proclaimed: “ND’s Fuego • The Club • Evolution of Nightlife.” Now, if Steve Wynn were to announce that henceforth he was to be addressed and mentioned exclusively as “SW,” and marketed his new property as “SW’s Encore • The Resort • Evolution of Las Vegas” … well, we’d all think El Steve had jumped the shark, to put it politely.

Before long, “Fuego” was doused and the Rio room became “ND’s The Club.” (Judging by its use of “Club Fuego,” Harrah’s Entertainment was as confused by the name-of-the-week as anyone.) All of which presumes that there’s some brand equity in those two initials. Honestly, does anyone not on the Las Vegas Weekly‘s nightclub beat lie awake nights, tormented by the question, “What, oh what will ND do next?”

Durr earned herself a place in the Vegas history books when she helped spirit 50 Cuban artists to freedom. But of late she’s drunk rather too deeply of her own bathwater. The ensuing cult of personality will not be missed.

OK, Durr is “develop[ing] the various elements of the brand.” Guy Laliberté is being sent into outer space (meaning he’s got 10 weeks to kick his nicotine addiction). So when will Christian Audigier take the hint?

Farewell to a legend. Europeans — as opposed to transplanted Europoseurs — remembered and revered saxophonist Sam Butera even after many in Vegas had forgotten him. Amidst the ongoing fuss over the demise of Danny Gans, the departure of Louis Prima‘s legendary sideman might have gone unnoticed were it not largely for the dedicated reportage of Cult Vegas author Mike Weatherford. Opportunties to hear Butera in Vegas were, in the past decade, few and fleeting … but I wish I hadn’t passed them up. That’ll be something I regret.

Posted in Cirque du Soleil, Current, Entertainment, Harrah's, Sahara, Steve Wynn, The Strip | Comments Off on Scratch one Europoseur

Train to Nowhere II

Sig Rogich's choo-choo to nowhere won't really be the privately funded enterprise that it's being sold as, the Las Vegas Sun helpfully explains. Bottom line: Rail transportation is inherently unprofitable, so you and I will be ponying up for the R&R Express (as in Rogich & Reid) sooner or later.

Vegas on TV: Our fair city is showcased on Dateline NBC tonight, but not in a nice way. Look for the cameo appearance by Bally's Las Vegas in the pimp-daddy segment. Judging by the brazen attitude of the miscreants shown in this morning's preview on Today, they've taken that "What happens here, stays here" bromide for gospel truth. 

Posted in California, Harrah's, Politics, Technology, The Strip, Transportation, TV | Comments Off on Train to Nowhere II

Loveman in denial

Harrah’s Entertainment CEO Gary Loveman continues his media-availability tour. In today’s installment, he grants an audience to the Las Vegas Business Press and insists that not only is everything as right as rain at Harrah’s but that the LBO he steered the company into is really “an ability to focus on long-term viability and the health of the business.” (Bond analysts remain skeptical.)

Despite bragging on the vast “resources and … expertise” of Apollo Management and TPG Capital, Loveman doesn’t have any new strategems or projects to offer. The overwhelming consensus of stock analysts and customers nowadays is that Less = Less at a Harrah’s-owned property. Meanwhile, the debtholders who bankrolled the buyout are asked to take haircut after haircut, and could be forgiven for thinking they’ve been played for suckers. Is anybody benefiting from this deal? Oh, I forgot.

One could go on but the story’s mostly a rehash of old Loveman platitudes, plus another refrain of “We Love Macao.” Harrah’s management has been warbling that tune incessantly of late — so much so that it sounds like an overt courtship of Pansy Ho, should she and MGM Mirage get a divorce.

The most newsworthy aspect of the story is the accompanying photo, in which the former Harvard prof appears to gotten a deep chestnut-brown dye job. If indeed that’s the case, Loveman should ask for his money back: It’s not only undignified, it’s inept.

Gordie Brown goes down: If you think Loveman gets a bad review, you should read about the Golden Nugget‘s star attraction, who inhabits “a place where pop culture pressed ‘pause’ at about the time of ‘Achy Breaky Heart,’ Hootie & the Blowfish and Forrest Gump.”

Then again, there must be people who groove to Hervé Villechaize jokes. Trouble is, they’re all going to be down at the Riviera, watching Charo. And when you’re described as a poor man’s Danny Gans … well, do the blows land any lower than that?

Great news for slot players: Seven more years of Clue and Battleship. Give Hasbro credit for knowing a good thing (in this case, its alliance with WMS Gaming) when it saw it. And, just because we can’t say it enough, WMS’ Star Trek machines are the cat’s pajamas. Just for the record, you know.

Posted in Downtown, Economy, Entertainment, Harrah's, Riviera, Technology, Tilman Fertitta, Wall Street, WMS Industries | Comments Off on Loveman in denial

Case Bets: Colony Capital, Siegfried & Roy, Obama smacks poker players

Bats hang over the doorway to the building that housed Mr. Jackson’s private arcade; guano stains the threshold.” That’s how the Wall Street Journal describes Michael Jackson‘s decaying Neverland Ranch. It gets even freakier from there, with the WSJ receiving a tour of the compound that might be described as Charles Foster Kane meets Pennywise.

Neverland is the latest can’t-miss investment play by Colony Capital, whose crackerjack CEO, Tom Barrack, says: “We think we made a very smart real-estate deal …” Then again, that’s probably how Barrack felt about his acquisition of Station Casinos, which just took a bath on some of its land holdings.

Even by Vegas standards, Neverland is way up there on the Bizarre-o-Meter. Too bad Colony can’t find a Native American tribe that can claim it as their ancestral land and have it taken into trust. It’d make a casino-based destination resort so demented and perversely infantile, Sin City would be green with envy.

The most blackly funny line in the video comes when the narrator says Colony is taking steps “to remove the taint of scandal.” Man, there’s no bleach on Earth powerful enough to eradicate that stain. Infamy, like nuclear waste, has a half life of forever.

A Tiger’s Tale: Those cats of Siegfried & Roy‘s were endangering life and limb almost 30 years ago. And gosh, whatever became of the Siegfried & Roy IMAX movie that never screened locally? CineVegas, how can you let this introuvable escape your programming grasp? Maybe Johnny Brenden will let you rent his IMAX screen … provided you show the movie at 7 a.m. or thereabouts.

So much for the conventional wisdom that Internet poker, at the very least, might find a sympathetic hearing from our poker-loving POTUS. The Justice Department‘s jihad against online casinos has taken a particularly nasty turn. The DoJ is striking at the soft underbelly of the business, going after players. So if you won $$ fair and square on the ‘Net, too bad: Uncle Sam is going to relieve you of your money and if you don’t like it, it’s not like you can call the cops.

As I. Nelson Rose points out, we’re getting into a legal gray area here — not least because the federal injunction was brought in New York State, where online wagering isn’t illegal. Let’s give the banks the benefit of the doubt: They probably had little choice to go along with this draconian and unconscionable action, yet another intrusion by Big Brother. Rep. Barney Frank‘s proposed UIGEA rollback can’t happen soon enough.

So culturally benighted am I that I had to have someone explain to me who this Jon & Kate are and why they are the object of so much fascination. Sometimes ignorance really is bliss. At least they haven’t “hosted” at a Vegas nightclub yet … have they?

Posted in California, Colony Capital, Entertainment, International, Internet gambling, Movies, Politics, Regulation, Station Casinos, The Strip, TV | Comments Off on Case Bets: Colony Capital, Siegfried & Roy, Obama smacks poker players

ABBA plays Vegas

On Sept. 24, 1979, the Swedish superstars played the Aladdin Performing Arts Theatre (now part of Planet Hollywood, of course). Last weekend, eight songs from that one and only Vegas show belatedly surfaced.

It’s an extraordinary document, both historically and musically. There are one or two “in house” recordings of ABBA in concert that are of decent listening quality. Most, however, are sonic abominations that make one of the world’s two most popular pop groups resemble a garage bad — and not a good one.

The Aladdin recording, however, sounds as though it was either made with very high-end equipment or run off of the sound board. It’s got a wide stereo spread that allows the listener to hear the “live” arrangements in manifold detail.

Several numbers on the ’79-80 tour were played in versions quite different from those enshrined on record, and both “Hole in Your Soul” and “Summer Night Night City” are much to be preferred as expansively heard here. The abbreviated “official” versions that are commercially available aren’t a patch on these take-no-prisoners renditions. (A Vegas-area kiddie choir gets into the act on “I Have a Dream.”) It’s further ammo for those of us in the heretical minority that believes ABBA live ≥ ABBA in studio.

Most important of all, herein lies confirmation of a contention made by ABBA chronicler Carl Magnus Palm in his Bright Lights, Dark Shadows. Palm, whose scholarship is the furthest thing from hagiography, writes that “contrary to most of their attempts in the studio, on stage ABBA really knew how to rock. Their live sound was vividly energetic and rumbling, with many extra, half-improvised piano riffs from Benny[*] and on-the-spot vocal ad-libs courtesy of Frida.

* — at a Vienna performance, he slipped the theme from The Third Man into the “Money, Money, Money” intro.

You can hear, with remarkable immediacy, the qualities Palm describes. They’re captured in these too-few Vegas tracks, culminating with the show’s double-barreled finale of “Does Your Mother Know?” and “Hole in Your Soul.” One can only hope that the other 15-odd songs on the set list were taken down with similar fidelity and will soon see the light of day.

Serendipitous timing marked the unveiling of the 1979 bootleg, since the Las Vegas Hilton spent this weekend hosting tribute band abbacadabra, comprised mostly of California- and Reno-based musicians. Most of the look of the show, in fact, was derived from the ’79 tour that played the Aladdin (though the decision to eschew a lead guitarist in favor of a second trap set was a serious mistake.)

Yes, I was there Saturday night. Bought front-row seats, in fact. And special thanks to the conscientious ticket salesperson who talked me out of springing for (more expensive) stage seats. We saved $10 and enjoyed the show not one whit less. Plus, as my girlfriend pointed out, I can now say that I shook hands with “Frida.” Not a bad way to end an evening at the LVH.

Posted in ABBA, Colony Capital, Entertainment, Planet Hollywood | 2 Comments

ABBA plays Vegas

On Sept. 24, 1979, the Swedish superstars played the Aladdin Performing Arts Theatre (now part of Planet Hollywood, of course). Last weekend, eight songs from that one and only Vegas show belatedly surfaced.

It’s an extraordinary document, both historically and musically. There are one or two “in house” recordings of ABBA in concert that are of decent listening quality. Most, however, are sonic abominations that make one of the world’s two most popular pop groups resemble a garage bad — and not a good one.

The Aladdin recording, however, sounds as though it was either made with very high-end equipment or run off of the sound board. It’s got a wide stereo spread that allows the listener to hear the “live” arrangements in manifold detail.

Several numbers on the ’79-80 tour were played in versions quite different from those enshrined on record, and both “Hole in Your Soul” and “Summer Night Night City” are much to be preferred as expansively heard here. The abbreviated “official” versions that are commercially available aren’t a patch on these take-no-prisoners renditions. (A Vegas-area kiddie choir gets into the act on “I Have a Dream.”) It’s further ammo for those of us in the heretical minority that believes ABBA live ≥ ABBA in studio.

Most important of all, herein lies confirmation of a contention made by ABBA chronicler Carl Magnus Palm in his Bright Lights, Dark Shadows. Palm, whose scholarship is the furthest thing from hagiography, writes that “contrary to most of their attempts in the studio, on stage ABBA really knew how to rock. Their live sound was vividly energetic and rumbling, with many extra, half-improvised piano riffs from Benny[*] and on-the-spot vocal ad-libs courtesy of Frida.

* — at a Vienna performance, he slipped the theme from The Third Man into the “Money, Money, Money” intro.

You can hear, with remarkable immediacy, the qualities Palm describes. They’re captured in these too-few Vegas tracks, culminating with the show’s double-barreled finale of “Does Your Mother Know?” and “Hole in Your Soul.” One can only hope that the other 15-odd songs on the set list were taken down with similar fidelity and will soon see the light of day.

Serendipitous timing marked the unveiling of the 1979 bootleg, since the Las Vegas Hilton spent this weekend hosting tribute band abbacadabra, comprised mostly of California- and Reno-based musicians. Most of the look of the show, in fact, was derived from the ’79 tour that played the Aladdin (though the decision to eschew a lead guitarist in favor of a second trap set was a serious mistake.)

Yes, I was there Saturday night. Bought front-row seats, in fact. And special thanks to the conscientious ticket salesperson who talked me out of springing for (more expensive) stage seats. We saved $10 and enjoyed the show not one whit less. Plus, as my girlfriend pointed out, I can now say that I shook hands with “Frida.” Not a bad way to end an evening at the LVH.

Posted in ABBA, Colony Capital, Entertainment, Planet Hollywood | Comments Off on ABBA plays Vegas

Goodman for governor … again?

It’s been bruited since at least 2002 and it’s happening yet again: Las Vegas Mayor Oscar Goodman is mulling a gubernatorial run for the umpteenth time. “Spoiler!”, cry some. I look at the uninspiring field (Montandon, Heck, Midnight Jim, Buckley, R. Reid) and ask, “What’s there to spoil?”

Buddy: The Buddy Holly Story: Drove the Chevy (Cobalt) to the levee but the levee was dry. How do you stretch a 75-minute tribute act into a two-hour/two-act Broadway musical? Badly, it seems.

Xanadu: It wasn’t just a wretched Olivia Newton-John movie, Kubla Khan‘s pleasure palace or Charles Foster Kane‘s crib. It was also was also Martin Stern‘s unbuilt casino magnum opus. Dr. David G. Schwartz has revived his online museum dedicated to this project, “Paradise Misplaced.” If it had been built, over 30 years ago, Xanadu would probably be one of those Strip casinos we now chuckle at, thinking it small, quaint and perhaps overdue for implosion. But it might have saved us from having to look at the oversize eyesore that is Excalibur, which looks laughably crude next to Stern’s elegant designs.

Dr. Schwartz even recreates the Vegas of 1975. We’ve come a long way since then … but who wouldn’t want to hop into the Wayback Machine and experience the more spacious Strip that existed 34 years ago?

In between trying to wrap up Question of the Day essays on Carl Icahn, Stan Fulton, and condo sales in Las Vegas, I’m clearing the blotter of a few things that have fallen through the transom lately, such as …

Elements: CityLife‘s Al Mancini didn’t care for this new eatery, just off Tropicana Ave. The not-quite-missus and I ate there on opening night and had a better experience for our money. This review, intended for the most recent Las Vegas Advisor, didn’t make the cut, so I offer it for your delectation:

Oscar didn’t turn up for the May 13 opening but he’d definitely be in his, uh, element here, considering that the menu boasts no fewer than 253 martinis. Choosing but two was difficult but we opted for a chocolate-banana martini and the Miami Vice. If you want Strip-quality (or better) eating and drinking at off-Strip prices, you cannot go wrong with Elements. Both the martinis and the small plates inhabit the $7-$9 range, while the costliest entrée tops out at $25.

We started with the Kona beef short rib on gorgonzola polenta ($9) and it did not disappoint in either tastiness or generosity of portion. There are only two steaks on the menu but both were outstanding, though the black angus flank steak ($21) is quite a bit spicier than even the peppercorn-garnished black angus filet ($25). Both were accompanied by mashed potatoes and steamed vegetables. Only the dreaded cold butter-on-cold bread basket and sluggish service (despite a small crowd) detracted from a flavor-rich experience.

Posted in Architecture, Carl Icahn, Dining, Economy, Election, Entertainment, MGM Mirage, Oscar Goodman, Politics, The Strip | Comments Off on Goodman for governor … again?

Quote of the Day

“We understand the economy has had a severe impact on the gaming industry. The [casino] companies have asked for temporary economic relief. And we’re asking for a variety of things too. Whether the two minds meet, we’ll see. But we’re not there yet.” — Culinary Union boss D. Taylor on Strip and downtown operators’ request for postponement of raises that are part of the current collective bargaining agreement. I think we all knew this moment was coming and it was only a question of when and how much.

Posted in Downtown, Economy, MGM Mirage, Steve Wynn, The Strip | Comments Off on Quote of the Day

Xanadu: the prequel?

Martin Stern‘s 1975 conceptualization of a Xanadu casino-hotel, as virtually reconstructed by Dr. David G. Schwartz, struck a familiar chord with one S&G reader. They quickly detected a resemblance between Welton Becket‘s 1971 Disney’s Contemporary Resort, built in modular fashion (hotel rooms were hoisted into place one at a time) for Disney World

… and the Xanadu design …

How does it look to you? That pyramid look was certainly the “in” thing back when Stern was pitching Xanadu (which probably explains his choice of concept). Here’s another example, from Cancun, the Grand Oasis:

Of course, when Las Vegas did get around to a pyramid-shaped hotel, it was such a flub (Luxor) that it’s still being “fixed” to this day. Too bad we’ll never know if Stern’s concept would have worked because post-Luxor nobody’s going to try anything remotely like it in Vegas again.

In other news: What may soon become know as Juice Train 2 continues to make headlines, thanks to Sen. Harry Reid‘s (D-NV) sudden flip-flop.

Posted in Architecture, Election, Florida, MGM Mirage, Politics, Technology, The Strip, Transportation | Comments Off on Xanadu: the prequel?

F'bleau: another triumph for Packer

James Packer sure knows how to pick ’em, doesn’t he? He’s just written off $250 million invested in (read: “wasted on”) Fontainebleau. His Crown Ltd. also took the opportunity to kick F’bleau while it’s down, stating it felt “no obligation and has no current intention to contribute any further equity or debt to Fontainebleau or participate in any restructuring under any bankruptcy arrangements.” In other words, please excuse me whilst I push you under the nearest bus.

Packer is on the Mendoza Line, now batting 1-for-5 in U.S. casino investments, with only a minority interest in Cannery Casino Resorts providing any ongoing yield. In baseball, a .200 average gets you a ticket to the minor leagues. S&G humbly suggests that, the next time Packer gets the urge to invest in American gaming companies, he ought to have a lie-down until the fit passes. Failing that, he might simply proceed to the water closet and “invest” his money straight down the crapper. The ROI should be about the same.

As for F’bleau, the significant storyline emerging from its bankruptcy appears to be the revelation that ex-CEO Glenn Schaeffer and associates spent $2.1 billion, performed years of construction … and were only 70% finished when lenders pulled the plug. Which is significant because F’bleau execs maintained, right up to the bitter end, that they’d open in October — giving them less than six months to do 30% of the work. I’m starting to have a glimmer of sympathy for the banks’ point of view.

Welcome to Albania: Otherwise known as Post-Gibbons Nevada. And good riddance to the 2009 Lege for aiding in this debacle.

Posted in Cannery Casino Resorts, Current, Fontainebleau, James Packer, The Strip | Comments Off on F'bleau: another triumph for Packer

Quote of the Day

"From a purely employment standpoint, I think we are already in overcorrection territory. How long can you sustain that lower standard of employment before you really start to impact customer service?" — Jeremy Aguero of Applied Analysis, pointing out that Las Vegas is at its lowest workers/hotel rooms ratio ever recorded and is in danger of repelling visitation.

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

Making out like bandits

In Business Las Vegas has crunched the numbers in its annual survey of Sin City's most highly paid executives. Not surprisingly, the list prominently features two companies — Harrah's Entertainment and Station Casinos — whose overpaid leadership has steered them into the ditch.

In terms of base salary, what's Station CEO Frank Fertitta III doing in the #2 spot, with $2.3 million? The guy must be a legend in his own mind if he thinks he warrants a higher wage than (then-) MGM Mirage CEO J. Terrence Lanni and Harrah's CEO Gary Loveman. (To say nothing of Las Vegas Sands doge Sheldon Adelson, a comparative pauper at $1.3 million.) You might question those gentlemen's business decisions, but they preside over companies far larger and more complex than Station.

Papa Frank belatedly realized he shouldn't have lent the boys the keys to the family car.

After stock-based compensation, bonuses, etc., were factored in, it was one big-ass payday at Harrah's, six of whose executives occupied the top 10. Even as their company groaned and crumpled under the weight of a spectacularly reckless LBO, and 9% of its workforce got the sack, these gentlemen carted home an aggregate $138.8 million. The dishonor roll includes CFO Jonathan Halkyard, regional presidents Carlos Tolosa, John Payne and Thomas Jenkin, and Vice Chairman Charles Atwood.

But even the best-remunerated of these (Tolosa, at $15.7 million) is a piker compared to Loveman's $92.3 million. They don't give pay packets like that at Harvard, do they? Loveman's tenure as Harrah's CEO looks increasingly like all-but-unmitigated reign of error but he's salting away enough wealth that his reputation need not concern him.

Former Harrah's exec John Boushy had a meeting of the minds (as in a head-butt) with colleagues at Ameristar Casinos, the result of which was that Boushy found himself on the street. But we should all be kicked to the curb so harshly: Boushy got $3 million — including half a year's pay — to take a hike. As walking-around money goes, that's not bad.

Posted in Ameristar, Economy, Harrah's, MGM Mirage, Sheldon Adelson, Station Casinos | Comments Off on Making out like bandits

Gambling and hope

Andy Holtmann of Raving Consulting has a splendid essay on this very topic and the fine line that casinos must walk when playing to people's hopes. It carries particular weight as it's authored by someone who's taken a mighty wallop from the collapse of the housing market — i.e., the sort of customer casinos need to understand when they get frustrated that people aren't spending more. Abrasive slogans like "Shut up and play" aren't going to cut it.

Speaking of excellent writing, Eugene Robinson of the Washington Post waxed eloquent recently on the subject of the nationalization of General Motors. Penned by an obvious car enthusiast (and longtime GM customer), Robinson's think piece is full of wonderful bon mots like, "The roster of Chevrolet, GMC, Buick and Cadillac may still leave GM with too many brands; I'd have axed Buick, too, and my opinion should count since I'm now one of the company's owners." (Well, at least we're rid of the Hummer.) My thanks to the reader who brought this to my attention — where would I be without you guys?

The infamous Pontiac Aztek.

On the subject of GM, I hold no opinion. However, I did notice that scarcely was the ink dry on the bankruptcy filings than a very slick and expensive-looking commercial explaining the 'new, improved' GM was airing on network TV. It certainly wasn't the sort of thing one whips up on iMovie overnight. Your tax dollars — and mine — at work.

Posted in Current, Detroit, Economy, Marketing, Transportation | Comments Off on Gambling and hope

Case Bets: Packer & Ho, Sands Bethlehem, MGM Mirage, Ameristar, Penn, Harrah's, etc.

• Smashing guitars — but not over each other’s noggins — James Packer and Lawrence Ho christened City of Dreams. The younger Ho downplayed expectations of foot traffic, saying his $2.4 billion megaresort could get by on far fewer visitors than the nearby (and comparably expensive) Venetian Macao, which draws 70K visitors daily.

• After a record-setting opening, Sands Bethlehem fell into fourth place during last week’s casino action in Pennsylvania. Not surprisingly, Philadelphia Park and Harrah’s Chester led the state.

Beau Rivage is safe. Although MGM Mirage was peddling several of its regional casinos, J.P. Morgan reports that “we have heard from some bidders that this process is close to dead, so we don’t expect to hear asset sales chatter in the near to medium term.”

• While yours truly was critical of staffing cuts at Ameristar Casinos, they appear to be paying off. The company projects flat revenue comparisons in 2009 but better cash-flow margins, pegging the savings as $40 million-$48 million, annualized.

• When in doubt, Penn National Gaming falls back on what it knows: racinos. It’s angling for the Laurel Park concession left on the table when Magna Entertainment collapsed. Both Penn and rival David Cordish appear to be trying to chisel a loophole into Maryland‘s slot-parlor law, which limits companies to one slot house apiece. Penn is already committed to Cecil County but wants Laurel Park … as does Cordish, who has a pre-standing commitment to the Arundel Mills area. The latter project has run into serious opposition. Expect a nip-and-tuck fight for Laurel Park.

• Penn is evidently getting cold feet in Ohio, however.

• Casino expansion in Iowa will have to wait until 2010, at the earliest. This delay is a disguised blessing. The Hawkeye State market has been holding its own during the recession but the timing for diluting the market with four new casinos could scarcely be worse.

• If wishes were horses, Harrah’s Entertainment would be galloping along the shores of the Yangtze River this very minute. Seriously, would you lend Harrah’s more money? Would you give an alcoholic the keys to your wine cellar? Well, you might get the empties back so you could redeem the deposit on the bottle.

Posted in Ameristar, Cordish Co., Current, Detroit, Economy, Election, Harrah's, Horseracing, Iowa, James Packer, Lawrence Ho, Macau, Maryland, Melco Crown Entertainment, MGM Mirage, Penn National, Pennsylvania, Regulation, Sheldon Adelson, Wall Street | Comments Off on Case Bets: Packer & Ho, Sands Bethlehem, MGM Mirage, Ameristar, Penn, Harrah's, etc.