News flash

Posted on July 24, 2020 by David McKee

Now we know who has bought the Skyvue site, late of Howard Bulloch and favored hangout of Tiny the Tumbleweed. It was purchased out of bankruptcy by the Three Affiliated Tribes of the Fort Berthold Indian Reservation. More details as they become available. Meanwhile, the Indians aren’t coming to Las Vegas: They’re here.

Posted in Current, The Strip, Tribal | 2 Comments

Case Bets

Posted on July 24, 2020 by David McKee

Something good came out of Washington, D.C. today. (How often can one type that sentence?) Reps. Dina Titus (D) and Guy Reschenthaler (R) introduced bipartisan legislation to repeal the excise taxes and head taxes (a $50 annual levy on every employee receiving bets) imposed by the guvmint on legal sports books. We don’t know how an avaricious Congress will react, but go for it. Or, as American Gaming Association President Bill Miller said, “To absorb the unnecessary burden of these taxes, legal sportsbooks are forced to offer worse odds and payouts or reduce investment in promoting legal betting channels to the public. Furthermore, the head tax serves as an impediment to hiring at a time when providing jobs is critical.” Amen.

By the way, we’re still admiring Miller’s verbal jujitsu before the Senate Judiciary Committee. Intransigence would have gotten him nowhere but, if you read between the lines of Miller’s statement to the committee, he outlines what sort of federal regulation (emphasizing a crackdown on illegal betting sites) the gaming industry will and won’t accept. We hope Sens. Mitt Romney (R) and Chuck Schumer (D) were listening. As for committee chairman Sen. Lindsey Graham (R), he’s so far off on the fringe regarding gambling that his views are probably irrelevant.

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Posted in AGA, Caesars Entertainment, China, Dining, DraftKings, Entertainment, GLPI, Golden Nugget, Health, Illinois, Internet gambling, Michael Gaughan, Philippines, Politics, Regulation, Sports betting, Taxes, Terry Caudill, TV, Virgin Hotels | Comments Off on Case Bets

Giant dildo at large in Sin City; Scientific pleases, disappoints

Posted on July 24, 2020 by David McKee

Who was that masked man anyway? A daring thief casually strolled into Deja Vu Love Boutique, made his way over to “Moby,” a giant dildo (approximately three feet long) and walked right out the door with it. The whale-sized self-pleasuring device retails for $1,250 but unless the perpetrator has some very unusual sex planned, its unique nature will make it difficult to fence. That didn’t stop him from tucking it into his car and casually driving off with it. As Huffington Post‘s Ron Dicker reports, “If the crook gets caught, he’ll surely be subject to the penal code.” However, we agree with actress Lexa Doig, our source for the story, who calls him “The anti hero the world needs right now.” As for Deja Vu, it’s getting the kind of publicity money can’t buy—not even $1,250.

“Better than expected” was how Scientific Games spun its 2Q20 results. The company lost $198 million on net revenue of $539 million. Internet-facing spinoff SciPlay, however, benefited from shelter-in-place directives, booking as much as 80% cash-flow growth. The combined companies are hardly paupers, sitting on $943 million in liquidity. Gaming revenue fell 78% ($91 million) but digital and social revenue was up 28% ($239 million). Lottery winnings were slightly impacted, down 9.5% to $209 million. SGMS cut back on operating expenses (-20%) and R&D (-32.5%), while its cost of capital went down 15.5%.

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Posted in Architecture, Baseball, Derek Stevens, Downtown, Economy, Internet gambling, Law enforcement, Lotteries, Mohegan Sun, Pennsylvania, Phil Ruffin, Scientific Games, Sports betting, Terry Caudill, The Strip, Wall Street, Wynn Resorts | 1 Comment

Quote of the Day

Posted on July 24, 2020 by David McKee

“Dr. [Anthony] Fauci is one of the finest public servants we have ever had. He is not a partisan. His only interest is saving lives. We need his expertise and his judgment to defeat this virus. All Americans should be thanking him. Every day.”—Rep. Liz Cheney (R).

Posted in Health | Comments Off on Quote of the Day

“Extreme” pessimism in Las Vegas; The D pisses for safety

Posted on July 23, 2020 by David McKee

Writing off the 2Q20 results as “less than relevant,” JP Morgan analyst Joseph Greff was guardedly optimistic about Las Vegas Sands, even though management’s conference call “shed little light on the path of recovery in Macau SAR, Singapore or Las Vegas,” the latter being described as “impaired in the near term.” (We’ll say!) Greff’s outlook was buoyed by the lifting of quarantines in China that “will allow for improving [gross gaming revenue] trends in Macau, a gaming-/travel-dependent market that experienced the COVID-19 downturn first and should experience a bounce/recovery earlier, at least in relation to potential recoveries on the Las Vegas Strip and in U.S. business travel lodging markets.” Singapore will be a relative laggard “given airlift dependency and sourcing players from multiple geographies that are also reeling from various travel restrictions.” As for Sin City, “Las Vegas was described in extremely pessimistic terms given that market’s airlift capacity and group/convention dependence, the latter of which was described as a zero for the rest of 2020 and a big segment of its (normalized) profit.” (emphasis added)

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Posted in China, Churchill Downs, Derek Stevens, Donald Trump, Downtown, Economy, Health, Las Vegas Sands, Macau, Maine, MGM Resorts International, Penn National, Sheldon Adelson, Singapore, The Strip, Tourism, Wall Street, Wynn Resorts | 1 Comment

Caesars: Meet the new bosses; Graham grandstands

Posted on July 23, 2020 by David McKee

VitalVegas got its hands on Caesars Entertainment internal document bearing the grinning visage of COO Anthony Carano. It outlined a restructuring of the company’s top executive ranks into nine divisions headed by an overwhelmingly WASP-y, male cohort. (Soon to become more so: Bally’s Atlantic City‘s Karie Hall is scheduled to be cut loose, while other women head small-fry properties.) The roster will get shorter, as it lists top execs for properties either in the process of being sold (MontBleu) or certain to be jettisoned (Caesars Southern Indiana). Interestingly, no one is named as being in charge of Harrah’s Resort Southern California. In a display of nepotism, CEO Tom Reeg‘s sibling Bill has been placed in charge of a division encompassing five Midwest properties. It’s not a cushy job, though, as he inherits problematic Lumiere Place plus oncoming competition in Illinois. Interestingly, while we thought Twin River Holdings would pluck low-hanging Strip fruit like either the Tropicana Las Vegas or Caesars’ Bally’s Las Vegas (more of which later), VV author Scott Roeben hears they’re kicking the tires on Planet Hollywood (now co-managed with The Rio), which won’t come cheap.

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Posted in AGA, Caesars Entertainment, Diversity, Eldorado Resorts, Internet gambling, Marketing, Planet Hollywood, Politics, Problem gambling, Resort fees, Sports, Sports betting, The Rio, The Strip, Tribal, Twin River | 2 Comments

Quote of the Day

Posted on July 23, 2020 by David McKee

“Social isolation and stay at home orders are effective, however, I don’t believe this a sustainable, long-term solution. People can’t spend the rest of their lives stuck in their homes. Until a vaccine is available, stay-at-home orders and social isolation continue to be the best way to slow community transmission.”—Dr. Tom Yadegar, medical director of the intensive care unit at Providence Cedars-Sinai Tarzana Medical Center.

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

History repeats itself, this time as farce

Posted on July 22, 2020 by David McKee

Caesars Entertainment is now Eldorado Resorts‘ bitch and, as Scott Roeben reports, there’s already reason to be concerned, starting with layoffs at Caesars Palace. New CEO Tom Reeg is apparently wasting no time sending employees to the firing squad. He promised $500 million in “synergies” which, as Roeben says, rarely bodes well for the workplace (or customer) experience. Of course, Reeg gave those synergies right back to Louisiana when he promised $500 million in improvements to Belle of Baton Rouge and other Caesars properties. He also committed anywhere from $400 million to $550 million to Atlantic City improvements, money that’s sure to come out of Caesars’ hide somewhere else. Fixing something that wasn’t broken, Reeg actually spent money to create this woozy new logo for the Roman Empire:

Reeg is now committed to pulling $7.2 billion out of his sock drawer as a cash payout to shareholders. Where that money’s really going to come from is anybody’s guess, as super-acquisitive Eldorado is leveraged to its eyeteeth, as Roeben points out, and this is hardly a period in which the casino industry is exactly throwing off free cash flow. Besides, Caesars has extensive rent commitments to Vici Properties and Gaming & Leisure Properties. Perhaps Reeg can recoup a few billion by selling Planet Hollywood (does he have Hard Rock International on speed dial?), maybe a few hundred million for The Cromwell, once Caesars’ pride and joy but now evidently surplus inventory. So much for the boutique experiment. Nor can those regional asset sales come through fast enough. If the economy doesn’t rebound by this time next year, Caesars may be headed for a date with an old flame: bankruptcy court.

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Posted in Atlantic City, Boyd Gaming, Caesars Entertainment, Economy, Eldorado Resorts, GLPI, Hard Rock International, Health, Internet gambling, Las Vegas Sands, Louisiana, Marketing, MGM Resorts International, Ocean Resort, Planet Hollywood, Politics, Sheldon Adelson, Wynn Resorts | 3 Comments

Quote of the Day

Posted on July 22, 2020 by David McKee

“These kids have got to get back to school. They’re at the lowest risk possible. And if they do get Covid-19, which they will—and they will when they go to school—they’re not going to the hospitals. They’re not going to have to sit in doctor’s offices. They’re going to go home and they’re going to get over it.”—Missouri Gov. Mike Parson (R).

Posted in Health, Missouri | Comments Off on Quote of the Day

Sisolak victimizes the vulnerable

Posted on July 21, 2020 by David McKee
Steve Sisolak’s new role model.

During the Great Recession, then-Gov. Jim Gibbons (R, above) committed a depraved act by raiding Nevada‘s problem-gambling fund to plug some holes in the state budget. Not to be outdone, Gov. Steve Sisolak (D) is following in Midnight Jim’s footsteps. He has whacked 75% off the pitifully small amount the Silver State sets aside to treat disordered gambling (derived from a surcharge on slot machines), leaving only $500,000. That’s hardly “george.” In fact, it basically abandons to their fate those unfortunate people who are the collateral damage of the state’s signature industry. Anybody who thinks compulsive gamblers should just suck it up or practice stoic self-reliance is cordially invited to go jump in a lake. And if you think that’s a stern judgment, you should see the blistering words that Richard Schuetz has for Sisolak and for Nevada’s cavalier attitude toward the dark underside of the neon glitter.

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Posted in AGA, Baseball, Caesars Entertainment, California, Card rooms, Culinary Union, Genting, Health, history, Internet gambling, Jim Murren, Macau, MGM Resorts International, Midnight Jim Gibbons, Nevada, Politics, Problem gambling, Real Estate, Regulation, Scientific Games, Sports betting, Steve Wynn, Tribal | 2 Comments

Casinos unleash Culinary’s wrath

Posted on July 20, 2020 by David McKee

Las Vegas‘ casino industry seems to be behaving counterintuitively, reopening casinos and hotels (Vdara is the latest) at a time when visitor demand is softening. JP Morgan analyst Joseph Greff reports today that, for the July 11-18 period, Clark County casino visitation levels were at 56% of where they were pre-Coronavirus and lower than they had been for the previous month (62%). Las Vegas Strip casino companies seem more than willing to trade hotel capacity for the appearance that things are Better Than Ever. Outside of Nevada, the regional sector also slipped, down by 4% over the same comparison periods. Wrote Greff, “Results, to us, reflect, the resurgence in COVID-19 cases, and while the data in NV doesn’t clearly illustrate this, we believe the LV Strip is underperforming the LV Locals segment.”

Greff continued, “We assess demand levels at casinos by analyzing both the number of visitors and the duration of their visits. We still are seeing median visit length at/above February levels in certain jurisdictions, which we believe is indicative of higher quality, more dedicated players.” Clark County was up 7% (Mississippi did even better, at 9%) while Louisiana players are cutting their visits short, 11% briefer than normal. Time on device in Missouri and Iowa is pretty much the same as before. Explained Greff, “We view this most recent batch of visitation data as a modest step backwards, though not entirely surprising given the continued increase in COVID-19 cases (which has resulted in certain casinos/card rooms re-closing) and a slower/decelerating recovery in credit card spend.”

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Posted in Arizona, Caesars Entertainment, CityCenter, Cosmopolitan, Culinary Union, Economy, Eldorado Resorts, Florida, Health, Hooters, International, Iowa, Lake Tahoe, Las Vegas Sands, Louisiana, Macau, Mississippi, Missouri, Nevada, Paragon Gaming, Politics, Sports, Station Casinos, Wall Street, Westgate LV | 2 Comments

Quote of the Day

Posted on July 20, 2020 by David McKee

“We all have to find a way to become more human—more kind, more thoughtful. Never become hostile, never become bitter. Keep the faith. It all will work out.”—the late Rep. John Lewis, 1940-2020.

Posted in history | Comments Off on Quote of the Day

Atlantic City: The fix was in

Posted on July 20, 2020 by David McKee

In a sham ritual (only two of five members were present), the New Jersey Casino Control Commission green-lit the Eldorado Resorts takeover of Caesars Entertainment. Effectively rebuking the recommendations of the Division of Gaming Enforcement, the two commissioners allowed deed restrictions imposed by Caesars remain in place at the Showboat, Atlantic Club and Claridge Hotel. Regulators are sometimes accused of stifling economic development and this would be a clear case in point. What’s more, gaming-entitled Boardwalk land is in finite supply and the NJCCC has effectively reduced it further, in its prostration before Eldorado. NJCCC Chairman James Plousis voiced platitudes that the merged companies “would be in a position to harm fair competition in the Atlantic City market.” Yet it was his idea to leave the deed restrictions in place.

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Posted in Atlantic City, Caesars Entertainment, China, Diversity, Donald Trump, Eldorado Resorts, Election, Hard Rock International, Health, Las Vegas Sands, Macau, Ocean Resort, Regulation, Twin River, Unite-Here | 4 Comments

Quote of the Day

Posted on July 18, 2020 by David McKee

“When you see something that is not right, not just, not fair, you have a moral obligation to say something, to do something. Our children and their children will ask us ‘what did you do? what did you say?’”—Rep. John Lewis (D), civil rights leader who died yesterday at age 80.

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

Up in Louisiana, down in Pennsylvania; Close Las Vegas?

Posted on July 17, 2020 by David McKee

It’s an extraordinary circumstance when a 19.5% drop in gambling revenue is a cause for celebration. But it happened in Louisiana, suggesting a stronger-than-expected comeback from the casino shutdown. Given that there was one fewer weekend day last month, the numbers may be even better than they initially appear. Harrah’s New Orleans and Fair Grounds racino were only open for 18 days, and paid the price, plunging 75% and 49% respectively. The New Orleans market had the worst of it (-47.5%) while the happy surprise was Baton Rouge, off a mere 4.5%. Lake Charles did second best, in terms of recovery, down 7%. Partly due to the Diamond Jacks closure, Shreveport/Bossier City missed by 17%.

Harrah’s New Orleans grossed a mere $5.5 million while Fair Grounds brought home $2 million. Boomtown New Orleans only missed 6% ($9 million), Treasure Chest was 27% down at $7 million. Amelia Belle sank 41% to $2 million. (It was a bad month for Boyd Gaming generally, a good one for Penn National Gaming.) L’Auberge Baton Rouge was flat (a triumph!) at $12 million, Casino Rouge was down 2.5% at $4.5 million while doomed Belle of Baton Rouge plummeted 31.5% to $1.5 million. L’Auberge Lake Charles slipped 6% but still took first place in its market with $24.5 million. Close behind with $24 million was the Golden Nugget, down 7.5%. Isle Grand Palais (due for overhaul) shed 19.5% to $6.5 million while Delta Downs was off 2% to $15 million.

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Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, Donald Trump, Economy, Eldorado Resorts, FanDuel, Golden Nugget, Health, Internet gambling, Louisiana, Mohegan Sun, Nevada, Penn National, Pennsylvania, Rush Street Gaming, Sports betting, Tribal | Comments Off on Up in Louisiana, down in Pennsylvania; Close Las Vegas?

Colony Crapital strikes out again; Adelson nixes Mets

Posted on July 17, 2020 by David McKee

Bumbling CEO and key White House economic advisor Tom Barrack is doing what he does best … or most … failing miserably. Barrack, who disgraced the Las Vegas Hilton and sundry other casinos, is now in danger of losing 137 over-leveraged hotels, having defaulted on loans and blown through forbearances. The $3.2 billion in loans secured 89 hotels formerly owned by motel mogul Gary Tharaldson (who some will remember as the former owner of the Westward Ho and sister property The Ho, for which he took Gary Loveman to the cleaners). Forty-eight Inland-branded hotels are also at risk. Trustee Wells Fargo is suing Barrack over a defaulted $768 million loan on the Tharaldson properties, which have run an operating deficit of as much as $25 million over the last three months. Colony is being charged with being “unwilling or unable to fund” aforesaid deficit.

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Posted in Baseball, Charity, Colony Capital, Las Vegas Sands, New York, Sheldon Adelson, Wall Street | Comments Off on Colony Crapital strikes out again; Adelson nixes Mets

Quote of the Day

Posted on July 17, 2020 by David McKee

“I will never put off till tomorrow what I can possibly do–the day after.”—Oscar Wilde

Posted in history | Comments Off on Quote of the Day

Cosmofusion; MGM Springfield wants new deal

Posted on July 16, 2020 by David McKee

There are some mighty mixed signals coming out of The Cosmopolitan of Las Vegas. The megaresort informed its thousands of employees that no layoffs are planned. However, it wrote the state that “The layoff and furloughs which began on or about March 24, 2020, and April 17, 2020, may continue beyond six months and/or could become permanent.” So which is it? A Cosmo spokeswoman pooh-poohed the governmental memo as “an administrative notice to the state should a business be forced to make staffing adjustments.” Given the present trajectory of business on the Las Vegas Strip, you’d think those adjustments would be made sooner rather than later, when lean times are expected to fatten. What is the Cosmo really saying? Your guess is as good as ours.

Whatever’s happening at the Cosmo pales in comparison to the job losses at regional casinos. Boyd Gaming sacked 903 employees of IP Biloxi alone, while Boomtown Biloxi dumped 149 and Hollywood Bay St. Louis let go another 167. Louisiana casinos are being hit hard, too, with an aggregate of 1,375 being pink-slipped by Margaritaville, Boomtown New Orleans, L’Auberge Baton Rouge and L’Auberge du Lac, as well as at tribal Cypress Bayou Casino. This brings unemployed casino workers in the state to a dismal 3,000.

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Posted in Boyd Gaming, Cosmopolitan, Derek Stevens, Downtown, Economy, Health, Louisiana, Macau, Maine, Massachusetts, Melco Resorts & Entertainment, MGM Resorts International, Mississippi, Pansy Ho, Penn National, Sociedade de Jogos de Macau, Stanley Ho, Tribal, Wall Street | 1 Comment

Caesars gets wrist slapped in Atlantic City

Posted on July 16, 2020 by David McKee

Casino developers with eyes for Atlantic City just got their biggest break in years—or at least since the demise of Trump Taj Mahal. Assuming the Eldorado Resorts takeover of Caesars Entertainment goes through (and there’s no reason to believe otherwise), all Caesars-imposed deed restrictions have to be lifted. As reader Mike Zidik puts it, “Hello Showboat Casino!” Not only does this give Bart Blatstein a clear runway, the Atlantic Club and venerable Claridge Hotel are also back in play. In light of “serious concerns” expressed by the Division of Gaming Enforcement (which opposed the merger), pinchpenny CEO Tom Reeg will have to commit $400 million in capex improvements to Harrah’s Resort, Caesars Atlantic City and Tropicana Atlantic City. These will be done over the next three years and Reeg has already put the money in escrow. He’ll have to spend another $125 million if the Bally’s sale to Twin River Holdings doesn’t go through promptly and, even if it does, reinvest 5% of annual gross gaming revenue in maintenance. Don’t forget he’s also committed a half-billion to property upgrades in Louisiana. (And he thought he was going to save $500 million.)

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Posted in Atlantic City, Caesars Entertainment, Dining, Donald Trump, Eldorado Resorts, Health, International, Louisiana, Macau, MGM Resorts International, Nevada, Penn National, Regulation, Security, Slot routes, The Strip, Twin River | 1 Comment

Slot routes feel Sisolak’s wrath

Posted on July 15, 2020 by David McKee

Even after they were ordered to enforce mask-wearing or else, some casinos continue to flout the rules. Clark County conducted 1,600 inspections and found deficiencies at Silverton, an absence of social distancing at the Aria pool and no effort being made to even try to socially distance patrons at the Mandalay Bay pool. Over at Venelazzo, ice cream parlor Cocolini was discovered operating without a business permit (!), an extraordinary oversight for landlord Las Vegas Sands. A Grand Canal Shoppes outlet of Subway was flouting mask-wearing requirements, as were sundry other restaurants around town. It’s difficult to know what it’s going to take for business like these to get serious about Covid-19, short of people dropping dead in the streets, God forbid.

Slot route operators are not merely sulking at being shut down through July 24 by the state. They’re filing suit. After all, some of them derive 50% of their revenue from bar-top gambling, which is now nixed. (It’s not like people are coming for the food.) Huffed one marketing manager, “We see that casinos are still having the ability to be open and function and we feel we did everything we were asked to do and we’re trying to figure out why we’re being targeted.” To which Gov. Steve Sisolak (D) would reply, “We know that Covid-19 can easily spread when people are congregating for long periods of time, like inside a bar. In states where we have seen significant spikes, such as Arizona, Texas, and Florida, they have all taken actions to roll back bars.” Lax conduct at those casino pools and gyms has also put them in Sisolak’s cross-hairs.

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Posted in Atlantic City, Caesars Entertainment, California, Dining, Eldorado Resorts, Election, Golden Nugget, Indiana, Internet gambling, Las Vegas Sands, MGM Resorts International, Nevada, New Jersey, Ocean Resort, Regulation, Silverton, Slot routes, Sports betting, The Strip, Tribal, Unite-Here | Comments Off on Slot routes feel Sisolak’s wrath