Park MGM goes smokeless?; Excalibur returns

Resuming business in mid-pandemic, the casino industry finds itself at a nodal point unlike few in its history. The question: To smoke or not to smoke? Leaving aside our (negative) feelings about tobacco and its side effects, if the casino industry has the willpower to extirpate smoking in casinos, this is the moment when it can make that happen. Normally, this would be commercial suicide but gamblers want to play again. Where are they going to do that if not in the casinos? Online? Only in a few states and even there Big Gaming owns the action. Besides, how many people want a potential airborne pathogen blown in their faces, cosseted amidst a cloud of cigarette smoke?

Also, gambling = smoking turns out to be something of a myth. Global Gaming Business reports Continue reading

Posted in Architecture, Arizona, Atlantic City, California, Environment, Health, Jim Murren, MGM Resorts International, Technology, The Strip, Tribal, Washington State | 3 Comments

Very green shoots; Miller takes the lead; “Crisis fees”

It’s an open question whether we’ve tamped down Coronavirus (keep wearing those masks!) but we seem to have turned a corner in the economy, a development that bodes well for the gaming industry. According to the Boston Globe, unemployment “unexpectedly” went from just under 15% in April to 13% in May, as the economy began to reopen. This trend can, obviously, be expected to continue as June brings more lifting of restraints. And since casinos are at the mercy of consumers’ discretionary income, more employment should translate into more dollars on the green felt. Pent-up demand is all well and good but there’s got to be real money behind it for it to matter.

Let’s not be selfish, however. 13% unemployment is unsustainable (especially as it stands at 17.5% for Continue reading

Posted in AGA, Derek Stevens, Dining, Diversity, Downtown, Economy, Health, Massachusetts, MGM Resorts International, Resort fees, The Strip, Wynn Resorts | 1 Comment

Quote of the Day

America united with a handful of troops, or without a single soldier, exhibits a more forbidding posture to foreign ambition than America disunited, with a hundred thousand veterans ready for combat.”—James Madison, The Federalist Papers.

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Station reopens bullishly; Who was that masked man, anyway?

On the eve of today’s reopening, Station Casinos hosted a conference call with JP Morgan analysts and was pretty darn confident that its base of Baby Boomers and retirees would flock back. So confident is that Station “has not been running any large-scale promotions ahead of the reopening.” (Take that, Derek Stevens!) Yes, Virginia, the little Wildfire casinos have now reopened, along with most of the big properties. The Palms remains on ice since Station “will need to monitor the LV Strip, airlift, etc. as it’s a hybrid property.” The company’s not hurting from keeping its two Fiestas, Texas Station and the Palms closed, as they accounted for only 20% of last year’s revenue and 10% of cash flow (thanks to losses at the Palms).

Analyst Joseph Greff reported that Station “is resuming conversations after buyers paused in March as COVID-19 began proliferating; management is hopeful there will be Continue reading

Posted in Australia, Caesars Entertainment, Cirque du Soleil, Crown Resorts, Derek Stevens, Downtown, Entertainment, Health, Las Vegas Sands, Marketing, MGM Resorts International, Palms, Planet Hollywood, Real Estate, Resort fees, Station Casinos, Steven Witkoff, Tamares Group, Terry Caudill, The Rio, The Strip, Tourism, Wall Street | 3 Comments

Quote of the Day

“As this weekend unfolded, there was elation as SpaceX celebrated its first crewed launch from U.S. soil. We can launch astronauts to outer space, yet many of our unemployed are still waiting on their first checks. The gaming industry reopens to appreciative guests, and still millions of workers are unemployed. COVID deaths in the US reached 106,000, and businesses across the country re-opened on their last dime. No wonder so many of us feel imbalanced.”—Raving Consulting CFO Brady Scott.

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Quote of the Day

“April will go down in history as the month that Nevada’s casinos stopped, and the economic consequences will be felt for months, if not years, to come.”—David Schwartz, gambling historian, professor and associate vice provost at the University of Nevada—Las Vegas.

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The Drew is through; Stevens’ green shoots

Would somebody please implode Fontainebleau already? It’s an eyesore, a civic embarrassment and a product for which demand does not exist. We perhaps should be saying “The Drew” but—per Scott Roeben‘s all-but-infallible VitalVegas, The Drew is in default, meaning that it’s time for CEO Bobby Baldwin to update his resumé, presuming he wants people to know he was affiliated with this white elephant. Steven Witkoff (over)paid Carl Icahn for the incredible hulk (F-blue, not Baldwin) and his business plan always seemed to have more optimism than logic. Among Roeben’s revelations is that Witkoff’s capital—$490 million—was pathetically short of what he needed. The backers wereMirae Asset Daewoo, NH Investment & Securities, Hana Financial Investment, Kangwon Land and a Hyundai Motor Group subsidiary.” (Witkoff also had some tobacco money in the project.) If Kangwon Land sounds familiar, it’s the only casino Continue reading

Posted in Baseball, Carl Icahn, Derek Stevens, Downtown, Economy, Fontainebleau, Health, Horseracing, Illinois, Phil Ruffin, South Korea, Sports, Sports betting, Steven Witkoff, Technology, Tourism, Transportation | 1 Comment

Putting diversity into action

We hardly feel qualified to address the present turmoil in our country, so we are momentarily turning over the microphone to Dave Marlon, CEO of CrossRoads of Southern Nevada, a prominent drug-rehab center, very active during the Covid-19 crisis. He is also CEO of homeless-Nevadan charity Vegas Stronger. Here are Dr. Marlon’s thoughts on the current state of affairs, particularly with regard to the history of Las Vegas.

In 1989 a Police Officer Pressed a Gun to My Nose for a Routine Traffic Stop

 Reflections on how I learned from that experience and have applied diversity to my businesses ever since

By Dave Marlon, CrossRoads of Southern NV & VegasStronger CEO

June 2, 2020

Seeing the horrific George Floyd incident and the related protests, mayhem, and looting is bringing back a flood of emotions and memories.

Back on August 28, 1989, I was driving home from the east side to my home by Lorenzi Park. I had just watched Blue Oyster Cult at Calamity Janes and they had put on an awesome show. I was an Italian 25-year-old still pretty new to Las Vegas driving my Blue T-top Camaro home on a hot summer night.   I was pulled over for a minor traffic infraction, but that night I made a critical mistake.

As the officer approached my car, I reached down to Continue reading

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Atlantic City gets good news; Stanley Ho canonized

July 4 could spell independence for Atlantic City casinos, judging by recent statements from New Jersey Gov. Phil Murphy (D). In a radio interview he said, “It’s probably still too early to give you a very specific answer but there’s a lot of work going into that right now. But we are trying like heck to get toward, I hope, before the Fourth of July or at least by the Fourth of July … that we’re in a position where we can say, you know what, subject to a lot of different parameters the casinos can be open again.” Which is the best news the Boardwalk has had in months, equivocal though it may be. Murphy was pretty candid about the challenges faced: “The bad news is casinos sort of have the attributes that are hardest to deal with this virus. It’s indoors, no Continue reading

Posted in Atlantic City, Boyd Gaming, Derek Stevens, Health, International, Internet gambling, Iowa, Macau, Marketing, MGM Resorts International, Missouri, New Jersey, Ohio, Problem gambling, Regulation, Stanley Ho, Twin River, Wall Street | 1 Comment

Quote of the Day

“I don’t gamble at all. I don’t have the patience. Don’t expect to make money in gambling. It’s a house game. It’s for the house.”—Stanley Ho (1921-2020), in a 1971 interview.

Posted in Stanley Ho | 1 Comment

California Lege mulls sports betting; Mega-Jottings

Gaming analysts may be getting a little ahead of themselves but they’re estimating that California could generate $30 billion a year in sports-betting handle, $2 billion in revenue and $300 million in taxes. That’d be pretty good news for a state whose budget is reeling from Coronavirus. Trouble is, sports betting isn’t legal in the Golden State just yet and the Lege will have to act fairly swiftly if it’s to make its way onto the November ballot. PlayCA.com is pinning its hopes on a pair of Assembly and state Senate bills shepherded by state Sen. Bill Dodd (D, below) and state Rep. Adam Gray (D, pictured), a longtime warrior for gaming. Revenue would be taxed at 10%, tribal casinos and horse tracks would be entitled to both retail and online sports wagering, and taxes would be levied directly upon the platform operators, circumventing a state/tribal clash of authority. Conspicuously missing are the state’s card rooms, already staggering under the ongoing Covid-19 shutdown.

PlayCA calls the tax rate “reasonable” and we have to agree—particularly compared to Pennsylvania‘s confiscatory Continue reading

Posted in Boyd Gaming, Caesars Entertainment, California, Downtown, Economy, Eldorado Resorts, International, Lotteries, New Jersey, Politics, Regulation, Rhode Island, Sports betting, Station Casinos, Taxes, The Strip, Tourism, Tribal, Twin River | 2 Comments

Unrest on the Strip; Boyd tightens belt

Maybe Coronavirus can’t keep people away from Las Vegas but we think we’ve found one thing that will: civil unrest. A pair of Las Vegas Review-Journal reporters found themselves in the line of fire when Las Vegas Metro launched a fusillade of rubber bullets and tear gas on protesters marching north on the Las Vegas Strip. It was one of the latest of many, many such shows of public ire since the choking death of George Floyd in Minneapolis. Or, as one protester told the R-J, “It has now become a crime in America to be black.” (A smaller demonstration in Summerlin went off peacefully.)  Nevada Attorney General Aaron Ford defended Metro’s actions—which included calling out SWAT—by asking, “Are they perfect? Absolutely not. We have work to do, we absolutely do.”

Police themselves were bombarded with projectiles, including frozen water bottles. The Strip disturbance (one hesitates to call it a Continue reading

Posted in Boyd Gaming, Downtown, Economy, Indiana, Ohio, Politics, The Strip | 2 Comments

Quote of the Day

“Every time a riot develops, it helps George Wallace.”—Dr. Martin Luther King Jr., February 1968.

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Quote of the Day

“When you burn down this city, you’re burning down our community. If you want change in America, go and register to vote.”—Atlanta Mayor Keisha Lance Bottoms.

Posted in Current | 1 Comment

Nevada ekes out slim April; Pansy Ho takes charge

Yes, Virginia, there was gaming revenue in Nevada last month, although the casinos were closed. Mobile sports wagering and online poker did the trick, plus expired slot tickets, although the amount realized from the latter is described as “immaterial.” Most jurisdictions achieved negative revenue, although we won’t dwell on that, but will not that winnings toppled 99.5%. Overall, the Silver State collected roughly $3.5 million. Las Vegas Strip casinos accounted for almost all of that, with a $436K contribution from Downtown and isolated pockets of (modest) revenue in Wendover and Carson Valley. Speaking of the Strip, it was the perfect place to get away from it all, only 152,716 passengers passed through McCarran International Airport, a 96.5% plunge from the same period in 2019. That drags the year-to-date total down 37%. International traffic was a Continue reading

Posted in Atlantic City, Boyd Gaming, Culinary Union, Downtown, Economy, Health, Jim Murren, Lawrence Ho, Macau, Melco Resorts & Entertainment, MGM Resorts International, Nevada, Pansy Ho, Regulation, Sociedade de Jogos de Macau, Sports betting, Stanley Ho, The Strip, Tourism, Transportation, Wendover | 2 Comments

Quote of the Day

“For basically my health and for my family’s health, I just had to resign. It sucks. I really liked working there. I don’t feel they are going to have everything up in place that’s necessary.”—Viejas Casino & Resort security guard Tony Wolf, who quit his job rather than take a chance on Viejas’ health protocols.

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Case Bets

Unlike Las Vegas, casinos in Atlantic City aren’t being proactive in preparing for a mid-pandemic reopening. Ergo, the public sector is stepping into the void, in the form of state Senate President Stephen Sweeney (D, right). Gov. Phil Murphy (D) has admitted to being flummoxed by the reopening problem, saying, “Casinos are a tough nut. It’s indoors. There’s no ventilation. It’s close proximity, and [players are] largely sedentary.” To address this conundrum, Sweeney is husbanding a pair of bills through the Lege that would codify health and safety protocols when casinos reopen. Face masks on, hand sanitizer at the ready, other players kept at a distance. “In the casinos, there will be smaller gaming areas. Some slot games may be closed, and the stools removed in order to have distance between the gaming products, at least in the short term,” casino consultant Bob Ambrose told Global Gaming Business.

None of that sounds new to people who have been following events in Nevada but it seems to be pretty novel for the Garden State. Rigorous cleaning is to be enforced, including every Continue reading

Posted in Atlantic City, Colorado, Dining, Health, Internet gambling, Marketing, Regulation | 2 Comments

Stevens doubles down; Bullish LV reopenings

Derek Stevens‘ 1,000-free-flights promotional gambit was such a wild success that the mogul has offered 700 airlifts more. But hurry: Stevens has extended his mega-comp to 12 additional cities, from Atlanta to

Tampa. We only quibble about Stevens adding Boston to his list: It’s such a Coronavirus vortex that maybe we shouldn’t be encouraging visitation from Beantown. “We knew there was a high demand for Las Vegas, and to see these flights book as quickly as they did is overwhelming and exciting,” said Stevens. “Whether people decide to visit my casinos or explore other parts of the city, this is a strong indicator of how Las Vegas can quickly be restored to its former glory.” Stevens certainly knows what players want; The D is promoted as “the only Sigma Derby horse racing game in Las Vegas.” Unfortunately, there is a fly in the ointment. According to The D’s Facebook feed, the free tickets are one-way only. So don’t leap at the offer unless you’re prepared to pay your freight home.

* Meanwhile, a slew of casinos have announced Continue reading

Posted in Boyd Gaming, Brothels, Cosmopolitan, Culinary Union, Derek Stevens, Economy, El Cortez, Golden Gaming, Health, Nevada, Sahara, Station Casinos, Tamares Group, The Strip, Tilman Fertitta, Tourism, Transportation, Wynn Resorts | 2 Comments

Quote of the Day

“Frankly, we’re more concerned about third quarter, fourth quarter, first quarter of next year. I think after the initial pent-up demand is behind us, then the question is, what’s the frequency and available discretionary income to come to an entertainment facility such as an integrated resort?”—Hard Rock International CEO Jim Allen on the current economy.

Posted in Economy, Hard Rock International | 1 Comment

AGA tackles IRS; Stevens picks up the tab

Perhaps emboldened by its success with the Small Business Administration, the American Gaming Association is tackling an even bigger, more formidable foe: the Internal Revenue Service. Specifically, the AGA is taking aim at the $1,200 “IRS lockdown,” the threshold at which slot-jackpot winners have to pay taxes, imposed in 1977. Even more specifically, the AGA wants the cap indexed to inflation, which would raise it to $4,700—although the AGA is pushing for a $5,000 cap. (The Obama administration tried lowering it to $600 but that idea was thankfully beaten back.) AGA prexy Bill Miller isn’t the first to have this notion. Reps. Dina Titus (D, below) and Darin LaHood (R) were pushing it last year. The AGA move comes in response to a Trump administration executive order for Continue reading

Posted in AGA, Caesars Entertainment, Derek Stevens, Eldorado Resorts, Health, Louisiana, MGM Resorts International, Racinos, Regulation, Sports betting, Taxes, The Strip, Transportation, Virginia | 1 Comment