The end of Viva

That’s one of the implications of Colony Capital‘s potential cash infusion into CityCenter. Since Colony owns 3/4 of Station Casinos and might find itself with a big piece of CityCenter, it’s an utter certainty that it wouldn’t go along with the notion of Station building a fugly CityCenter knockoff on the other side of I-15. Of course, the Fertitta Bros. still control the Station board, so they could try and drag Colony down the Viva highway to hell if they want to force the issue.

But what does it say about CityCenter if Colony wants to buy in? The fund’s track record in casino investing has been predominantly dreadful of late. A philosophy of acquiring “non-performing loans, distressed assets … out-of-favor sectors,” hasn’t worked out so well. For instance, the REIT got a fire-sale price ($140 million) on Resorts Atlantic City, then saddled the dowager with a mortgage 160% excess of her market value.

When Resorts’ sclerotic revenues caught up with Colony, it simply opted out of its “house payments.” This nearly brought us the edifying spectacle of seeing a casino get repossessed by the bank. Between the venerable Resorts and the comparably ancient and non-performing Atlantic City Hilton, the fund’s Boardwalk portfolio risks being dubbed “Colony Crapital.”

Not only did Colony overpay (or, more accurately, over-borrow) for Station Casinos, it got further hornswoggled in the deal. Despite holding 76% of the equity, it only controls 40% of the board. Similarly, it let Goldman Sachs buy into the Las Vegas Hilton by dint of surrendering ultimate authority over capex decisions to Goldman.

It seems baffling from a common-sense standpoint that Colony could purchase a big stake in City Center, offer $850 million for the Tropicana Atlantic City (as it did last spring) or start a new fund to buy more yet distressed assets (as it’s doing) when most of its casino properties are sucking wind. Shouldn’t it be salvaging what it’s already got?

Ethically, yes; realistically, no. For a fund like Colony, that’d be throwing good money after bad. (“Wanna buy a piece of this fund to bail out Resorts A.C.? No? How about putting some more into Station? Why not?!?”) The way it’s compartmentalized, Colony can keep buying shiny new silos, no matter how many of its existing silos are crumbling into barkdust, so long as there are takers for its fund offerings. Leave the bad investments to their fate and better luck next time.

One might be pardoned for thinking Colony couldn’t run a lemonade stand profitably, as the company’s gaming-sector strategy seems to consist of throwing money against a wall over and over again until some of it comes back. One of the questions raised by the CityCenter discussions is: How much control would Colony get in return for its money? Given that MGM Mirage is setting aside shutdown capital for the project, Colony appears to hold the leverage. It’d be smart to leave MGM in the driver’s seat — and besides, Colony is no stranger to dealing itself into a position of weakness.

Then again, Colony may well be a stalking horse for Saudi mogul Prince Alwaleed Bin Talal, one of its business partners. He’s got deep pockets and grandiose plans … just the sort of fellow who might fancy being the monarch of CityCenter.

Speaking of the Fertitta Bros. … the president of their pride and joy, the UFC, a charming fellow by the name of Dana White is making headlines and not in a particularly good way.

Those [expletive] UFC [expletive] board meetings [expletive] must be [expletive] really something [expletive] else, [expletive]. Wouldn’t you [expletive] want to [expletive] be a [expletive] fly on the [expletive] [expletive] [expletive] wall, mother[expletive]?

Should Colony take a stake in CityCenter — thereby dooming Viva — perhaps the Fertittas can send Mr. White to Colony HQ as their good-will ambassador.

Posted in Atlantic City, Colony Capital, Goldman Sachs, International, MGM Mirage, Sports, The Strip | Comments Off on The end of Viva

The Company That Ate Itself

Perhaps it was with dry irony that the Las Vegas Review-Journal's latest Station Casinos story's subhead read, "Company blames economy, poached customers." And by whom might those customers have been poached? By Station Casinos itself! The company's imperial overreach has reduced it to gnawing on its own femur, as each new Station property cannibalizes business from somewhere else in the Fertitta empire.

Bad as the 2008 financials were, 2009 is going to be that much worse once the encroachment of M Resort begins to be felt. Last year, Station's casino revenues fell by 11% and ADRs were down comparably. A 14% slippage in cash flow from 2007 meant that a deal valued at a rose-colored 9.7X EBIDTA is now effectively over 11X cash flow. Even had the Fertitta Brothers not insisted upon carting home a half-billion dollars as part of the buyout, its valuation would still have been quite over-optimistic.

(Even in a boom year, Station's proposal to dilute Aliante Station's revenues with a nearby "Losee Station" would be inexplicable. Given the company's current financial performance, it's an idea quite a few fries short of a Happy Meal.)

Elsewhere in the casinosphere, the closest thing to good news was Planet Hollywood's disclosure that it shaved 40% off of last year's losses, thanks to a nearly 8% revenue increase. More alarmingly, the Las Vegas Hilton — seemingly the one casino-hotel Colony Capital couldn't ruin — has swung from a profit to a loss.

It's a business miracle! Losses at soon-to-be-cleft Herbst Gaming widened by 60%. Most of that was driven by a -33% downward spiral in slot-route revenues. By contrast, the ouster of sundry Herbsts in favor of CEO Ferenc Szony appears to have given the company's 15 casinos a boost because, as dowdy as some of those places are, their revenue actually grew 1% last year.

For most companies that might be unremarkable; for Herbst it's a miracle. It also puts paid to the Herbsts' face-saving insinuation that, by keeping the slot routes and parting with the casinos, the family was hanging onto the real goodies. I can't even remember the last time I went into a Terrible's convenience store and saw somebody playing the slots.

Humpty Dumpty had a great fall. The Nevada state budget is a two-legged stool, balanced upon gaming and sales taxes. That stool is getting wobblier by the day. Unfortunately, if the Lege has any solutions, it's keeping them to itself.

Posted in Boulder Strip, Cannery Casino Resorts, Colony Capital, Economy, Herbst Gaming, M Resort, Station Casinos, The Strip | Comments Off on The Company That Ate Itself

New category of Las Vegan

Europoseur:

Only found on or near the Strip, sometimes impersonated by French Canadians (see Soleil, Cirque du). Occasionally demand to be addressed by their initials only, usually smoke cigarettes and are invariably able to generate fawning press coverage. Are known to manifest themselves in forms male (Christian Audigier), female (N[icole] D[urr] of Raw Talent Live infamy) and extraterrestrial (Guy Laliberté).

Posted in Cirque du Soleil, Current, Entertainment, The Strip | Comments Off on New category of Las Vegan

Hooters vs. Riviera

It's a race to Chapter 11 now, with Riviera Holdings in the lead. Its glandular-themed rival down the street is opting out of an interest payment and drawing down the last of its credit, never a promising sign. However, Riviera is forcing a confrontation with Wachovia Bank. Given a choice between hoarding cash on hand and making a $4 million interest payment, Riviera execs chose Door #1. That comes atop some scarifying 4Q08 numbers that included a $13 million loss, plus cash-flow declines of 64% on the Strip and 42% in Black Hawk, Colo. (Those newly enacted rule relaxations in Colorado can't come soon enough.)

Downward pressure on ADRs (not to mention 84% occupancy) and diminished convention trade (-28%) were blamed for the decision to conserve dollars. While the Riv recorded almost as much entertainment revenue as the year before, 27% of that took the form of comps to high-value players and thus came right back off the ledger.

The Riviera's appeal is not likely to be enhanced by the announcement it is renting out space to that bane of Strip visitors — a timeshare company. "We have implemented and will continue to implement promotions to attract competing hotel customers to our property to enjoy our amenities," Riviera adds. Just don't order the powdered eggs, OK?

Station Casinos, meanwhile, closes the book on a poor-to-awful 2008. Cash flow was below $100 million for the fourth quarter, further underlining how overvalued the company's LBO price was.

No more sports betting … at least not until football season at Bally's. What the hell. You can't bet on a Boston Celtics game there anyway.

Posted in Colorado, Economy, Harrah's, Riviera, Station Casinos, The Strip, Wall Street | Comments Off on Hooters vs. Riviera

Un-Believe-able discounts

Seen yesterday at the Luxor ticket booth: A video message promising 35% off Believe tickets if you stay at the King Tut place between Tuesday and Thursday (inclusive).

Heck, just last week Luxor trotted out one of the most “george” package deals I’ve ever come across: For a two-night/$420 stay, you’d get: “all you can eat at the buffet” (LVA readers don’t like it and neither did I), plus pairs of comped tickets to the Titanic and “Bodies” exhibitions (S&G recommends the former, won’t go near the latter — creeptastic); free admission to both LAX and CatHouse; Nurture spa day passes; and, yes, a pair of freebie seats for Believe.

At a very conservative estimate, that’s $431 in comps for a $420 room (not including hotel taxes are sundry add-ons). Yes, Vegas is giving away the store.

And yet … not so desperate that you can score free tix for Fantasy. No, you are condemned to see Believe. If it wasn’t clear right after opening night, it’s painfully evident now that if this vanity production were any more of a dog it’d have mange. Forget a 10-year contract. This turkey will be lucky to eke out 10 months.

What’s more, you can enter a drawing to win Criss Angel‘s automobile (a Corvette, I seem to recall). If that car is anything like Angel’s show, as soon as you get the keys and registration, it’ll have to go into the shop for weeks of vague “fixations.”

Posted in Cirque du Soleil, Dining, Economy, Entertainment, MGM Mirage, The Strip | Comments Off on Un-Believe-able discounts

Quote of the Day

"The point of convergence is the obligatory version of Louis Armstrong singing 'What A Wonderful World,' apparently required for an impressionist to obtain a Clark County business license."Mike Weatherford on the common denominator between Danny F. Gans, Terry Fator and "Downtown" Gordie Brown. I was offered free Brown tickets but couldn't pass up the chance to rearrange my sock hamper or maybe even watch some paint dry (literally … the drywall in my bathroom had to be redone and resurfaced after the roof sprang multiple leaks).

Posted in Downtown, Entertainment | Comments Off on Quote of the Day

Trop snoozes, loses

Like a hot potato, the Tropicana Las Vegas continues to bounce from Columbia Sussex to Tropicana Entertainment and now maybe into the hands of Alex Yemenidjian. (This management-contract arrangement looks more like laying the groundwork for a sale … if so, thanks for taking S&G‘s advice, guys. It’s worth what you pay for it.)

A top price of $380 million can be viewed either as a bargain — $11 million an acre, a long way down from the berzerk price paid by ColSux two-plus years ago — or a boondoggle, seeing as even $380 mil represents an 84X cash-flow multiple. Somebody’s got a job ahead of them.

Unfortunately, TropEnt CEO Scott Butera hasn’t had his eye on the ball. Now, there wasn’t anything he could do to keep the Titanic and Bodies exhibits from jumping ship to Luxor. But he pulled the plug on Folies Bergere and the Comedy Stop. Then, having given magician Dirk Arthur the boot, Butera’s minions had to reverse field and grant the illusionist a reprieve through September. (So if you go to the Trop in April, the only entertainment offering will be an afternoon magic show. That’s it.)

Just another day at the Trop.

As of Sunday, the Trop will have no (as in “zero”) marquee attractions to tout. So it’s an understatement to say that an agreement “in principle” with comedian Bobby Slayton doesn’t come a day too soon and a formal contract needs to be inked yesterday.

When Nero played an as-yet-uninvented instrument, Rome burned. Whilst Butera fiddles, the Trop merely continues fade. Unless TropEnt’s song and dance about repositioning the Trop is just a soft-shoe act, playing for time until the whole problem can be deposited in Yemenidjian’s lap.

Ever since he took the reins at TropEnt, Butera has been fixated upon getting the Tropicana Atlantic City back (which he should) and, secondarily, with regaining Casino Aztar in Indiana (which he did). But the LV Trop has clearly been a low priorty and now he’s washing his hands of it. Which means the real problem won’t be Yemenidjian’s but that of Trop employees and their equally neglected customers.

Patience, thy name is a Harrah’s Entertainment bondholder. A surprisingly large number of these long-suffering souls are willing to wait just shy of a decade to redeem their distressed Harrah’s debt. They’re better men than I.

This book looks like a must-have. And, no, Huntington Press didn’t publish it. But we do have a nifty new edition of Whale Hunt in the Desert, thank you for asking.

Posted in Alex Yemenidjian, Architecture, Atlantic City, Columbia Sussex, Current, Economy, Entertainment, Harrah's, Indiana, Marketing, Technology, The Strip, Tropicana Entertainment, Wall Street | Comments Off on Trop snoozes, loses

The Unlucky Club & other Case Bets

Did somebody build the inaptly named Lucky Club  (above) over an Indian burial ground? A deprivation of access is but the latest indignity suffered by this North Las Vegas grind joint. While it was still the Speedway Casino, it was ravaged by fire. Years earlier, it was the Cheyenne, most famous for having its bookeeping described as “smoke and mirrors” by then-Nevada Gaming Control Board Chairman Bill Bible. That rumpus — and a few others like it — would dog casino speculator Shawn Scott for the rest of his spotty career. Last we heard, Scott had hunkered down in the Virgin Islands.

Better fortune was in store for the long-on-the-market Ritz-Carlton Lake Las Vegas, which couldn’t find any takers not so long ago. I’m guessing “undisclosed price” is code for “fire sale.”

(Update: It sold for $98 million.)

At least I’m not alone in thinking that Las Vegas Sands is headed over the brink. So does John L. Smith who has more bad news for Sheldon Adelson.

Need to raise awareness of your bookmaking service? Hire a gambling addict as your pitchman! The surprise isn’t that this, er, novel marketing initiative was ashcanned but that it got as far as it did. Earth to Better Bet, Earth to Better Bet …

Earth to Wynn … Weather forecasters have been predicting high Thursday gusts of wind all week long. But Wynn Resorts must not have paid its cable TV bill because it sent window-washers up Encore anyway. Not surprisingly, something went wrong and they had to be rescued. Now that everybody in Vegas is on a curtain-wall craze, expect crises like these to multiply exponentially.

Going out on a limb, the Las Vegas Sun says that Sens. John Ensign and Harry Reid were doing the right thing … now that a consensus has formed and the story has faded, making it safe to take a stand.

Wendover: Casinos, yes; mental health care … not so much.

If you’re going to lose your marbles in Nevada (some would say I already have), don’t do it in Wendover. It’s still OK to lose money there, though. Wendover Will approved this message.

On second thought, you might not want to bring your money here, either. At least not if you use debit cards. Where do I sign the petition to abolish the Nevada Legislature? They don’t need any stinking due process, do they?

Posted in Architecture, Current, Economy, Encore, Entertainment, Lake Las Vegas, Marketing, Politics, Problem gambling, Regulation, Sheldon Adelson, Steve Wynn, The Strip | Comments Off on The Unlucky Club & other Case Bets

CityCenter contest!

While building the Stratosphere, maverick casino owner Bob Stupak ran out of money, leaving the tower only partially erect. Wags were quick to dub the stymied Stratosphere “Stupak's Stump.”

Stupak, of course, eventually finished the tower — although it proved his undoing in the gambling industry. I was reminded of this while pondering MGM Mirage's predicament with its forcibly foreshortened Harmon condo-hotel. (If it had gambling, we'd call it a “failsino.”)

At a truncated 25 stories (or roughly half its intended height), The Harmon cries out for a nickname but so far nobody has risen to the occasion. That's where you, dear readers, come in. How does “Lanni's Lump” grab you? Or “Murren's Midget”? Perhaps even “Baldwin's Bump”? “Perini's Plinth,” anyone?

Better still … suggest your own nickname for the mountain that was made into a molehill. Let the alliteration commence!

Posted in Architecture, MGM Mirage, The Strip | Comments Off on CityCenter contest!

Casino apocalypse

I'm deeply imbedded in other projects today. In the meantime, by way of In Business Las Vegas and GamingFloor.com (source of yesterday's Harrah's Entertainment time warp, too) here's the answer to the question, "How many casino failures can you pack into nine minutes?" Watch it and weep.

Posted in Boyd Gaming, Cannery Casino Resorts, Colony Capital, Cosmopolitan, Current, Economy, Harrah's, Herbst Gaming, James Packer, MGM Mirage, Sheldon Adelson, Station Casinos, Steve Wynn, The Strip, Wall Street | Comments Off on Casino apocalypse

Death, taxes and Station Casinos

It’s all but certain that the unenviable steeplechase to be the first major gaming company to declare bankruptcy in 2009 will be won by … Station Casinos!* (On Tax Day, no less.) None of the company’s three rescue scenarios does not involve some form of bankruptcy.

(* — Unless Trump Entertainment Resorts still counts as “major” operator, but I strongly doubt it.)

Potential runner-up MGM Mirage is at least a month behind. Coincidentally or otherwise, mid-May would also mark the point at which the maw of CityCenter devours the $500 million realized in the Treasure Island sale (leaving approximately $600 million in the kitty), should that close on schedule.

Which might be A Good Thing: Another razor-sharp analytical piece from the Las Vegas Sun efficiently lays out the reasons why Chapter 11 is the worst option  — except for all the others. Not only does it keep the companies in one piece, it reduces the incentive to cannibalize capex dollars for debt servicing. Also, the prospect of facing regulatory scrutiny is daunting enough to bankers that they’re inclined to keep the status reasonably quo.

Although MGM Mirage has one of the best debt-to-earnings ratios on what I’ll call the Benston-Velotta Scale, short-term debt has pushed it far closer to the brink that Wynn Resorts or Boyd Gaming, both of whose ratios look slightly worse on paper …

But not nearly as bad as the nearly 15:1 debt-to-earnings imbalance under which Las Vegas Sands is crumbling. It really makes you wonder what the Sands-loving analysts at Sanford Bernstein have been putting in their coffee. Running a close second at 13:1 is bankruptcy-bound Station, the victim of cash-flow projections that were extraordinarily far from the mark.

Taxing problems: More numbers are available on the proposed cigarette and liquor tax hikes. They’re ugly but I did get a chuckle from the R.J. Reynolds lobbyist who floated the solicitous argument that tobacco taxes are bad because they’re regressive. Nice try. (Altruism is not Big Tobacco’s strong suit.)

I’ve also shamelessly swiped these market-cap comparisons, which Hugh Jackson posted today:

Barrick Gold:            $27.5 billion

Newmont Mining:    $18.72 billion

Wynn Resorts:          $2.37 billion

Las Vegas Sands:      $1.46 billion

MGM Mirage:          $959 million

That’s $46.2 billion for just two mining firms vs. less than $5 billion for three of the most significant casino companies. Which of these industries is in the cross hairs for an imminent Nevada tax increase? I’ll give you a hint: The answer does not contain the word “mining.”

Wynn(ing) Scenario: No matter what he says, people love to speculate that Steve Wynn’s going to use his new stock offering to buy another casino. I’m not saying he won’t … but $175 million won’t get him far, even in this market. Unless he’s got a sudden hankering for the Tropicana or Riviera, that is.

Posted in Boyd Gaming, Donald Trump, Economy, MGM Mirage, Sheldon Adelson, Station Casinos, Steve Wynn, Taxes, Wall Street | Comments Off on Death, taxes and Station Casinos

Case Bets: MGM Mirage, Harrah's, Wynn, Shuffle Master, Taxes

As we wait for the MGM Mirage earnings report, signs of desperation mount. If the company is willing to cast away a pearl like new, costly and high-yielding MGM Grand Detroit, what isn’t sacred? Not even the corporate jet, provided the buyer doesn’t welsh on the deal. (Guess those high rollers won’t have to fly commercial for a while yet.) Whoever made that offer for MGM Detroit, though … (s)he’s one smart cookie, methinks.

Dumping regional properties at a time when that’s where the strength of the casino industry is just doesn’t make sense — although you could probably make a case for ditching the already written-down Gold Strike in Tunica or the Grand Victoria riverboat in casino-killing Illinois. Actually, getting the hell out of the hellacious Illinois market seems like the best idea since forever.

Congratulations, Gary Loveman! You took home $39.6 million last year, while your company was crashing and burning — not to mention pink-slipping 8% of your workforce. Don’t say Loveman isn’t feeling Harrah’s pain: He’s forfeiting a whole $100K in salary for 2009. There goes the college fund!

The casino giant is one step from the bottom of the Moody’s bond-rating ladder. In a memo to the SEC, Harrah’s Entertainment announced that managers were taking a 5% pay cut and that “it might have to delay expansion, sell assets or restructure debt.” Delay expansion? No! Really? That was off the table the minute the ink was dry on the LBO. Refurbishment is also a low priority, as capex costs will be trimmed by as much as 59%.

Meantime, the guessing game begins over which assets might be on the block. In one of the busier threads over at Hunter HillegasTwo Way Hard Three, fellow blogger Chuck Monster synopsizes the reshuffling of Harrah’s properties between various holding companies, which includes a possible abandonment of the volatile (read: shaky) Lake Tahoe market. Sometimes I think Harrah’s does this jiggery-pokery just to amuse itself watching the blogosphere try to determine What It Really Means.

In a regional update, most Lousiana markets were slightly down last month — except Lake Charles, which Harrah’s pulled out of, leaving Pinnacle Entertainment in possession of the field. Oops.

Pssst! Don’t tell anyone! It’s stashed as the second item of “In Brief” but Wynn Resorts is floating a stock offering to the tune of over nine million shares. (Other sources say seven million.) Wall Street had an understandably adverse reaction — at first blush — to this 7% dilution of Wynn stock, which closed up $1.07 today. Given that it’s a proactive move to retire debt, it’s tough to quarrel with Wynn.

Update: Clarification of the Wynn stock float comes by way of Forbes.

As for the undying speculation that Steve Wynn might want to buy back Bellagio or golden oldie The Mirage, one analyst — Goldman SachsSteven Kent — says he “would be surprised to see Wynn pursue this,” given that Wynn is a builder, not a buyer.

Parenthetically, in the above-mentioned blog thread, Brian Fey makes the following, extremely trenchant observation: “Its pretty bad, that here we are almost 10 years later [following Wynn’s ouster from Mirage Resorts], and Steve’s biggest competition is still Steve’s old properties. Just shows you how far behind everyone else is when it comes to the game.

Shuffle Master wins? Rival company Elixir Gaming settled litigation by selling its Asian shuffler business.  The Las Vegas Review-Journal sees it as a win for Shuffle Master, while the Las Vegas Sun takes the opposite take, implying that Shuffle Master got its pockets picked — which could mean an ignominous curtain for just-departed CEO Mark Yoseloff, if that’s indeed the case. They report, you decide.

More of the Same Dept.: Democratic leadership in the Nevada Lege is going to do exactly what (little) is expected of them — jack up existing taxes to onerous levels as a cop-out solution to our budgetary crisis. Booze and cigarettes are the low-hanging fruit of taxation but Nevada casinos better get ready to bend over and grab their ankles, as they’re probably the next target of opportunity. Oh, and brace yourself for a much bigger beer-and-wine tab at the casinos if this goes through … as though casino booze wasn’t costly enough already!

Never let it be said that S&G didn’t at least once have a kind word for Columbia Sussex. The former Tropicana owner is reducing its carbon footprint. Amen to that.

Posted in Columbia Sussex, Current, Detroit, Economy, Goldman Sachs, Harrah's, Labor, Lake Tahoe, Louisiana, MGM Mirage, Mississippi, Pinnacle Entertainment, Shuffle Master, Steve Wynn, Taxes, Technology, Wall Street | Comments Off on Case Bets: MGM Mirage, Harrah's, Wynn, Shuffle Master, Taxes

A twist of Fator

We took in Saturday night’s opening of Terry Fator and his Cast of Thousands, as did quite a few C- and D-list celebrities, plus several MGM Mirage executives — no doubt enjoying 90 minutes’ respite from worrying about their company’s future. MGM brass weren’t nearly as visible as Harrah’s Entertainment exec-about-town Don Marrandino. He was last seen chatting up a threesome of bottle blondes in matching, skintight, red dresses. Presumably they were the string trio Alizma, although I hope they’re better at fiddling than at finding their seats, a feat which required circumnavigation of the auditorium. (Such are the perils of wearing bright, identical outfits.)

The evening was more like a corporate cocktail party with intermittent entertainment by special guest Terry Fator, as audience members couldn’t be bothered to take their seats for a full 20 minutes, kibbitzing away interminably. This meant that people who were actually prompt (Quaint notion!) were treated to tape loop upon loop — I lost count — of Fator having his portrait painted. At least it gave one plenty of time to appreciate the skill and energy of DJ Ben Harris, as good a warm-up act as you could have.

Although the crowd seemed extraordinarily reluctant to actually sit down and watch the show, once it started, they ate it up. Some Red State-friendly material was red meat to the opening-night audience, but the biggest laugh had to be when Fator took a jab at Believe divo Criss Angel. You had to wonder how the MGM execs felt, listening to the roar of savage glee directed at their failed, $80 million wonder boy. (Looking on the bright side, never has Lance Burton gotten such good reviews as he did right after Believe exploded on the launch pad.)

With the exception of Norm(!) Clarke, local press reaction to Fator has been pretty ‘meh,’ the consensus being that it’s mostly tame, old-school fare (or, “cloyingly cute, reactionary and regressive“) that will play well to a broad audience. Sounds like a can’t-miss box office formula to me.

Perhaps it’s because I have low expectations where ventriloquism is concerned or don’t find Strip entertainment very cutting-edge anyway, but I thought Fator exceptionally good. Singing is in and of itself very difficult — doing it well while also throwing your voice and manipulating a puppet takes an inconceivable level of skill, to say nothing of stamina. And, save for a brief costume change, Fator is onstage for the entire show. In fact, it’s so densely packed with material that it risks overload. It’s like walking that tightrope between being sated or outright stuffed at the buffet.

Fator has a snazzy-looking set and a crisp, seven-piece backup ensemble. The CGI imagery that accompanies most of the songs is beautiful and state of the art. The video montages for “Home” and “What a Wonderful World” aren’t just corny, though, but are so literal-minded they stray into parody.

The vast majority of Fator’s songs and pop-culture references are contemporary, with Patsy Cline and Roy Orbison impersonations are throwback-y as he gets. James Blunt, Gnarls Barkley, Amy W(h)inehouse and several other current artists get their due, so I’m perplexed by the critical consensus that Fator’s material is tepid and dated. By contrast, Danny F. Gans adds two or three adult-contemporary numbers into his mix and it’s treated like a massive reinvention.

OK, so maybe ridiculing Michael Jackson is like tripping a dwarf but this is a Jackson-obsessed town. Our dailies keep tabs on Jacko’s whereabouts and speculation about if or where he’ll headline in Vegas is neverending. So Fator is hardly off-base here. His sudden swerves into political japery, though, are so unexpected that they can throw you right out of the rhythm of the show. They contrast jarringly with the prevailing soft-and-cuddly vibe, sounding more like sudden irruptions from Fator’s id. Most of the other laugh lines are ribald enough for Vegas but not so raw that a parental advisory is required.

The giant, flanking-video-screen setup is de rigeur for almost any showroom these days but give Fator props: He’s in closeup much of the time, so any technical sloppiness on his part will be writ large. As for his occasional confusion as to which voice should be emanating from which mouth or his tendency to “corpse” in mid-routine, dissolving in laughter … well, that’s part of the fun and keeps the evening from feeling too slick.

At first, I thought The Mirage was taking a huge risk by awarding a long-term contract to a ventriloquist. But Fator is no ordinary ventriloquist and the gambit appears certain to pay off. The Mirage looks like it’s got a huge hit on its hands — maybe not Donny & Marie huge, but not too far behind either.

As though to put Fator in perspective, the truly awful Gordie Brown returns to the Golden Nugget on March 27. (Given former owner Steve Wynn‘s affinity for things French, I always think of that place as Le Nugget d’Or … but I digress.) At least Brown won’t be contractually obligated to sing that craptastic “Golden Nugget” theme song with which Rich Little opened his shows — we think.

I won’t get to find out, as we have an insuperable conflict with Trent Carlini‘s Elvolution that night. Aw shooty!

Update: Darn it all but they’ve gone and pushed the Trent Carlini opening media night back to April 24. Guess I’ll just pass on Gordie B. in favor of watching DVDs of Space: 1999.

Coming attractions: You’ll get Anthony Curtis‘ take on Terry Fator when the next issue of Las Vegas Advisor makes print.

Posted in Cirque du Soleil, Current, Entertainment, Harrah's, MGM Mirage, The Strip, TV | Comments Off on A twist of Fator

Packer gets a discount; solving the I-15 problem

Though it can't seem to settle on a dollar figure for James Packer's renegotiated Cannery Casino Resorts purchase, this story makes one salient point: A $1.7 billion-plus acquisition could be converted into a 25% stake for $370 million-$390 million. That effectively reprices 100% of Cannery at $1.48 billion-$1.56 billion. Which enables Packer to save face on what is described as an "increasingly onerous deal." Or it could be a graceful way of bowing out of further U.S. casino adventures in favor of a renewed Down Under focus.

A reader writes …

I know that you are a big fan of a high-speed rail system to Vegas, and I do see the need to increase the traffic flow from SoCal to Vegas.

But I wonder if anyone has run the numbers to compare adding an additional highway lane or two (and even expanding any bridges) from the north edge of the LA area to Vegas? And how that figure compares to the cost of a high-speed rail.

Again, I'm not an opponent of rail lines (in fact, my wife comes from a long-line of train-employed relatives), but I wonder where the best "bang for the buck" would come from.

From some VERY basic numbers on the web, I'm getting estimates of about $1 million per mile per lane for highway building in the desert. Even with adding a lane in each direction, that's about $2 million per mile, or around $400 million for the approx. 200 miles from the north edge of metro LA to Vegas. Even if you more than double that figure for bridge expansions, etc., you still only end up with a cost of $1 billion. Compare that to the $8 billion in the stimulus package for high-speed rail (although I'm not sure how much of that $8 billion goes to the Vegas rail, or what the total cost of that project would be).

As you can tell, I am NO expert on this, but it might be interesting to hear from some experts (and who don't have a dog in the hunt).

You make good points, Kemosabe.

Posted in Australia, California, Cannery Casino Resorts, James Packer, Technology | Comments Off on Packer gets a discount; solving the I-15 problem

Station vs. Boyd IV: This time it's spite

Inside the wacky world that is Station Casinos' executive suite, business judgment is evidently trumped by getting even with your main adversary. How else to explain Station's eight-month push to get zoning approval for Losee Casino Station? The company is sitting on a 58-acre non-gaming parcel at the northeast corner of Craig and Losee roads.

In addition to needing a zoning variance, Station must also contend with North Las Vegas Mayor Michael Montandon's stated opposition (which has softened a mite of late) to creating new gaming enterprise districts in NLV while several existing ones remain unexploited. Then again, Montandon is running for the GOP gubernatorial nod in 2010 and the Fertitta family are george Republican donors, so a change of heart may be in the offing.

As for this "Losee Casino Station," it's a project Station pulled out of its ass (and rather stealthily, at that). It has every appearance of being done to checkmate Boyd Gaming's adjoining Park Highlands project (the former "North Coast"), which Boyd obtained by agreeing to surrender the gaming entitlement on land it owned further south. As a business move, it makes scant sense.

Architect Ed Vance's design for Station Casinos' quickly forgotten Castaways site.

Surely major casino companies don't act out of pettiness and spite, I hear you say. Consider this: Durango Station remains in decade-long limbo and previously announced projects for Inspirada (in Henderson) and Cactus Lane, near South Point, are in a holding pattern — as are redevelopments of the Palace Station and Wild Wild West areas. And don't forget the long-mooted, long-deferred Castaways Station (or whatever that promised casino-restaurant will be called). Or that, just a short drive down Craig Road, new $662 million Aliante Station is trying to make its nut.

No, defying all logic, Losee Station has somehow risen to Priority #1 status. I wish I could put it more politely but Station is throwing a "cock block" on Boyd. The company's appetite for brinksmanship knows no bounds.

Posted in Architecture, Boyd Gaming, Politics, Station Casinos | 1 Comment

'M' is for 'mobbed'

Local naysayers have been gleefully predicting the swift demise of M Resort for weeks now. And I’ll admit I even entertained a few doubts as we drove out there yesterday morning. I mean, unless you live well south of Vegas proper, you have to drive all to hell and gone to reach M. Was that initial fortnight of frenzied business just a novelty phase?

Boy, were my doubts misplaced. M was crawling with players and other customers at 10 a.m. on a Sunday, with lines soon forming for just about every restaurant on the property. That’s to say nothing of the number of people queuing up to join the players’ club. That was about a half-hour wait, followed by what must have an even longer one for the buffet, although my bad back was flaring up so fiercely that A) it played hob with my sense of time and B) I was sure I’d be leaving M on a gurney.

That buffet is no doubt one of the main drivers of M’s early success. (Savvy marketing is another.) Both in breadth and quality, it rivals the two buffets at The Rio, thereby putting it in the top three among off-Strip buffets. M manages the not-inconsiderable feat of putting Station Casinos‘ Feast buffets in the shade and the respectable Sam’s Town one is left completely in the dust.

Leaving M, you’ll pass the once (and future?) site of Gary Goett‘s Olympia Gaming casino-resort (above, as originally conceived), now retitled Legends at Southern Highlands. One billboard vows an April 2010 opening, which is preposterous, while another — right next to it — only promises 2011. As of this writing, not so much as a spadeful of earth has been turned. This project was announced before M but has slipped into the “believe it when it happens” category.

Donald Trump likes to sue but this time he’s on the receiving end. Depositors in insolvent Trump Ocean Resort Baja are claiming “fraud, negligence, unjust enrichment and violating federal disclosure laws” after the project blew through $31.5 million worth of deposits with nothing to show for it but a hole in the ground. As is quickly becoming the case whenever a Trump-branded product goes belly-up, the orange-haired TV star is claiming he had nothing to do with it.

Posted in Boyd Gaming, Dining, Donald Trump, Gary Goett, Harrah's, M Resort, Station Casinos | Comments Off on 'M' is for 'mobbed'

Nationalize the casinos?

Some news stories are too far-out crazy to ignore. This week, it’s XinhauNet‘s prognostication that Uncle Sam will go into the casino business any day now. Or, as the over-imaginative reporter puts it, “some people are talking about the possibility that the U.S. government will bail out, own and operate the casinos to get huge revenues the government badly needs.”

The rationale is: The guvmint is about to nationalize the banks; the banks own the casinos; ergo, Washington will own the casinos. Even as a syllogism that fails, since you’d have to have a lot more casino defaults for its premise to be even half-true. Undeterred by reality, XinhauNet dredges up a “Washington economist” who suggests that the feds skip the intermediate step and just take over the casinos themselves, thereby reaping a predictable supply of cash flow.

If nothing else, this bizarro take on the current economy gives an excellent idea of how screwed up our worldview would be if we all grew up in Communist China.

Speaking of which … massive and overwhelming federal economic intervention is a good thing, quoth Sheldon Adelson (at least when China does it), who also disses the democratic process in his latest serenade to the ChiComms.

Earth to MGM Mirage … last week’s Las Vegas Weekly carried a junior-page ad (p. 18) for CityCenterCareers.com. Its affect is somewhat disassociative, as the accompanying picture shows The Harmon at its intended full height, not the 27-story stump for which MGM will have to settle, thanks to inept construction work. If this ad keeps running as is, MGM is going to look like it’s severely in denial, promoting a version of CityCenter that will exist only on VegasTodayAndTomorrow.com‘s “Dreams” page.

Posted in Architecture, Economy, MGM Mirage, Sheldon Adelson, The Strip | Comments Off on Nationalize the casinos?

Case Bets: Fasolt, etc.

A reader has asked how Fasolt got his name. I'm to blame for that, because he was called "Marble" when I met him. He was living in a foster home in Minneapolis, after a woman had thrown out her boyfriend and his cat, but not before her bratty kids has smeared bubble gum in his (the cat's, that is) fur. "Marble" was a logical reference to his coloration but it's also cold, smooth and impersonal … in short, nothing like the friendly and gently inquisitive — albeit huge — cat to whom I was introduced.

Fifty bucks later (the best $50 I ever spent), the mega-kitty was mine but the name had to go. Casting about for inspiration, my mind fell upon Fasolt, the soft-hearted giant from Richard Wagner's opera Das Rheingold. In it, Fasolt has a surly brother, Fafner, who clubs him to death in an argument over some gold. Fasolt, to his credit, only had eyes for the goddess of spring, Freia, but once the brothers are persuaded to take mere money instead, they're at each other's throats in nothing flat. (Allegory much?)

Fasolt, the giant, as portrayed in the Bayreuth Festival's 1980 revival of Das Rheingold.

Since Fasolt is the only character in the Ring of the Nibelung whose morality doesn't come into question at some point, he made a perfect namesake for my new feline friend. It's been the despair of veterinarians, who always misprononounce his name "fasOLT," but they've come to love him so much, I no longer mind. He lives with two Norwegian Forest Cats, Shadow and Mr. Bit, so that's a lot of plus-sized felines lumbering around my little pied-a-terre.

Magic's a Drag: I was persuaded to see it last night and, yes, it is indeed a drag. How anyone can justify $50 a ticket for such a cheaptastic show is beyond me — especially when you can now get into Cirque du Soleil's Love for as little as $60.

Dix Nix Snix: Some gay-bar hanky-panky (third item) will cost Snick's $50K and a sex-, er, six-month loss of its slot route, unless the Nevada Gaming Commission overrules an already lenient settlement. Moral: Sex and slots don't mix.

Actually … I can think of some off-color variants of that lesson, but I'll spare you.

Posted in Cirque du Soleil, Entertainment, Pets, Planet Hollywood, Regulation, The Strip | Comments Off on Case Bets: Fasolt, etc.

More M Resort pix

Armed with my first digital camera (which the Significant Other won during the brief run of "The Real Deal" at the Venetian), we scoped out M Resort on opening night. If Encore marked the return of "the red casino," M responds with what might be called "the resinous casino." If you grew up in a region thick with sap-laden trees, the look will be familiar:

This pillar motif runs throughout the resort …

… as here, over the slot floor.

Fixtures like these …

… also make nifty places of concealment for the domes that mask the PTZ surveillance cameras.

This lovely canopy in the grand foyer …

… is but a stone's throw from the check-in desk.

The sports book. Obviously.

The requisite wild-and-crazy casino carpet, for those who dig that jazz.

Blown-glass ornaments in the VIP players' lounge, where the TV (not shown) …

… was set to Family Guy, in a gesture of impeccable taste. Other teevees throughout the property were tuned to either ESPN or Fox Noise, er, News. The lounge was also home to …

… this floral arrangement. (Like, duh.)

Sample table setting (out of several) in one of the smaller meeting rooms.

Just add conventioneers and stir. (Groovy carpet, huh?)

Lastly …

… your humble blogger comes to grips with one of M's self-service beverage stations. As you can see, I'm partial to the Real Thing. And, yes, I often look similarly vexed. All this and we still got home in time for United States of Tara. (Toni Colette can play damn near anything.)

Enjoy!

Posted in Architecture, Encore, M Resort, Technology, TV | Comments Off on More M Resort pix

Quote of the Day

"If only Boyd had thought of this! They could have had tourists PAYING to help them complete Echelon. The only thing I don't get is the air-conditioned cabs. That hardly seems like a realistic adventure." — Steve Friess on the newest Vegas attraction, "Play with our Cats," in which you pay for the privilege of tooling around in construction vehicles.

Posted in Boyd Gaming, Entertainment | Comments Off on Quote of the Day