Quote of the Day

“We need to take the issue seriously instead of avoiding it. We can’t let this big cake be eaten all by foreign capital.” — Phoenix Island Chairman Zeng Xianyun, advocating casino expansion to tourist-oriented Hainan Province, where MGM Resorts International has signed a letter of intent to build a Bellagio-branded hotel.

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Desert Diamond sets debut; Paddock’s grim legacy

Controversial Desert Diamond Casino will finally open on Feb. 19, superseding a “big box” temporary casino on the same site. Pride and joy of the Tohono O’odham Nation, Desert Diamond was the bane of Gov. Doug Doucey‘s existence, as well as that of other nearby tribal casinos. The T-Os, as they are known, cannily exploited a loophole in the Indian Gaming Regulatory Act to plant their flag in the greater Phoenix area. After much agitatation, everybody bowed to the inevitable and Desert Diamond became a reality. It will create 1,300 new jobs, and offer 1,136 slot machines and 48 blackjack tables.

The T-Os are betting heavily on poker, with 36 tables worth on hand. There will also be Continue reading

Posted in Arizona, Canada, Dining, Florida, Internet gambling, Japan, Las Vegas Sands, Lotteries, Mandalay Bay Massacre, New York, Philippines, Problem gambling, Sports betting, Tamares Group, Taxes, The Strip, Tribal, Wall Street, Wynn Resorts | Comments Off on Desert Diamond sets debut; Paddock’s grim legacy

Next stop, Hempfield!

Cordish Gaming has broken ground on its Hempfield Township satellite casino in Pennsylvania. The $150 million property will have 750 slots and 30 table games, as well as a 445-seat sports book. The casino will fill the space left by the defunct Bon-Ton department store. The casino is scheduled for late-2020 completion, by which time we should know if the Keystone State is oversaturated with gambling or not.

Jottings: Rutgers University has issued another sky-is-falling report on the Atlantic City market. The study provides ammunition for bipartisan Continue reading

Posted in Arkansas, Atlantic City, Caesars Entertainment, Cordish Co., Dining, Downtown, Economy, Eldorado Resorts, Entertainment, Golden Gaming, history, Internet gambling, Kentucky, Las Vegas Sands, Law enforcement, Massachusetts, MGM Resorts International, Mohegan Sun, Pennsylvania, Regulation, South Korea, Sports betting, The Strip, Tribal, Wall Street, Wynn Resorts | 2 Comments

Sports betting burgeons in Pennsylvania

Pennsylvania sports-betting handle was $241 million last month, which translated into $19 million in revenue (a quarter of which promptly went to the state). Mobile wagering accounted for $199 million or 82% of the wagering, up from 65% last July. “Most encouraging is that Pennsylvania’s online market is still expanding with new brands, including DraftKings. That should only encourage more growth,” said gaming analyst Dustin Gouker. Still preeminent was FanDuel Sportsbook at Valley Forge Resort Casino, with $114 million in online handle. It was followed distantly by Rivers Casino Philadelphia ($30 million) and Rivers Casino Pittsburgh ($26.5 million), as well as Parx Casino ($18.5 million).

Parx led retail betting with $7.5 million, followed by Rivers Philadelphia with $7 million and Valley Forge with $4 million. Further back were Continue reading

Posted in Boyd Gaming, Caesars Entertainment, DraftKings, Eldorado Resorts, Environment, FanDuel, Greenwood Racing, Illinois, Law enforcement, Michigan, Mississippi, Mohegan Sun, Penn National, Pennsylvania, Regulation, Rush Street Gaming, Sexual misconduct, South Dakota, Sports, Sports betting, Tribal, Twin River, Wall Street, Wynn Resorts | Comments Off on Sports betting burgeons in Pennsylvania

Quote of the Day

“Finance is a gun. Politics is knowing when to pull the trigger.—Don Licio Lucchesi in The Godfather, Part III.

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What if they gave a casino and nobody came?

That’s what’s happening in Chicago, where nobody—and I mean nobody—is showing any interest in a new casino license. Gee, do you think it could have something to do with the 72% tax rate which effectively ensures that a Windy City casino would operate at a loss? Besides, a Chicago casino is no slam-dunk even under a lower rate as it presumes that potential patrons would A) pass up ‘convenience gambling’ in the suburbs, B) brave the hassle of driving into Chicago (I can testify to this first-hand), a challenge at the best of times, in order to C) patronize a casino in the slums, which is where tax-and-spend Mayor Lori Lightfoot (D) wants to put it. The casino industry’s mass refusal to submit to Illinois‘ crazed taxation demands is a welcome show of solidarity.

Lightfoot is holding Chicagoans hostage, threatening higher Continue reading

Posted in Alex Meruelo, Illinois, Macau, Politics, Sahara, Sam Nazarian, Scientific Games, Security, Taxes, Technology | 2 Comments

Going for the gold in California; Vegas tops sin survey

It’s not quite as pre-apocalyptic as dogs and cats living together but California Native American tribes are joining with private-sector racetracks to push for sports betting in the Golden State, surely the ripest market in the U.S. The coalition wants to put the California Sports Wagering Regulation & Unlawful Gambling Enforcement Act on next year’s election ballot. Setting the betting age at 21, the Act would enable sports betting at tracks and tribal casinos, with collegiate and professional games eligible for wagering. High-school-sports betting would be out of bounds. Wagering on California collegiate games would also be verboten. Revenues would be taxed at 10% with some of the proceeds funding mental health programs. (So far, so good.)

Mobile wagering is neither explicitly authorized—and yet Continue reading

Posted in Atlantic City, Caesars Entertainment, California, Donald Trump, Eldorado Resorts, Election, Entertainment, history, Illinois, Japan, Louisiana, Regulation, Sports betting, Steve Wynn, Taxes, The Strip, Tribal | 1 Comment

Quote of the Day

“Our customers are worried about gambling ads on TV – and we understand their concerns. That’s why we’ve committed to limiting the amount of gambling ads on Sky and better protecting those vulnerable to problem gambling.” — Sky UK CEO Steven van Rooyen on a new policy restricting gambling ads to one per commercial break. Now if we could only get the same sort of restraint put on political ads …

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Ocean outperforms Atlantic City; Encore Boston crushes competition

Atlantic City casino revenues were $202 million last month, flat with the year previous. Slot revenues were up 3.5%, table win down 6%. Despite flat wagering at the tables and slots, Borgata gained 6% at the slots and ceded 7% at the tables for an overall 1.5% increase. It grossed $51.5 million. The Caesars Entertainment trio was up 1%, managing to gain 3% on slot win, an advance almost negated by 3.5% less table win on 7% less wagering and despite an astronomical hold percentage. Caesars Atlantic City grossed $22 million, an 8% increase, Harrah’s Resort reported $24 million, up 1% and Bally’s Atlantic City slid 9% to $13 million.

At the risk of burying the lead, Ocean Resort outperformed the competition rather spectacularly, skyrocketing Continue reading

Posted in Atlantic City, Boyd Gaming, Caesars Entertainment, Economy, Eldorado Resorts, Environment, FanDuel, Greenwood Racing, Hard Rock International, Internet gambling, Japan, Macau, Massachusetts, MGM Resorts International, Mohegan Sun, Ocean Resort, Penn National, Pennsylvania, Regulation, Rush Street Gaming, Sports betting, Tilman Fertitta, Tribal, Wynn Resorts | 3 Comments

Big bounce at IGT; Cosmo revises restaurant lineup

“What’s 23% Between Friends?” So asked Credit Suisse analyst Ben Combes as he reported on International Game Technology‘s 3Q19 earnings call. IGT’s $407 million in cash flow exceeded consensus Wall Street expectations by 3%. IGT stock vaulted 23% on the news. “We like IGT’s defensive revenues, long-term contracts and stabilizing US gaming business,” Combes wrote. “Offsetting this is ongoing concerns in Italy around taxes, low growth, and a deleverage story that will take time to play out before capital returns increase.” Replacement sales in the U.S. were very strong, up 38%, while lottery and VLT revenues rose 1%. A 12% increase in Italian taxes translated into $127 million less operating income. Mamma mia! No mention seems Continue reading

Posted in Caesars Entertainment, Cosmopolitan, Delaware, Detroit, Dining, Entertainment, Genting, history, IGT, Indiana, International, Las Vegas Raiders, Lotteries, M Resort, MGM Resorts International, Missouri, New York, Penn National, Sports betting, Taxes, The Strip, TV, Wall Street | Comments Off on Big bounce at IGT; Cosmo revises restaurant lineup

Quote of the Day

“We took cognizance of the new synthetic folksiness that saturated certain programs and the excursions into political waters by these ‘I don’t know anything, but I know what I think’ guys. We wondered about the power of television to sell synthetic personalities as it sells the soup and the soap.” — Elia Kazan on his prescient film, A Face in the Crowd, newly available on Blu-Ray.

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Second thoughts on Japan; Seneca smackdown

Is it possible that Japan is too rich for the casino industry’s blood? Las Vegas Sands President Rob Goldstein recently pegged the cost of a Japanese megaresort at $12 billion, while Fitch Ratings thinks it will be closer to $15 billion—more than double the cost of the world’s most expensive casino, Marina Bay Sands. The Motley Fool reports that Goldstein “believes it should serve as a gut check for the industry to really consider whether it can get the appropriate return for investors by spending that kind of money.” We’ve long been skeptical of the pie-in-the-sky returns projected for Japanese casinos and this only bolsters our caution. Sands recently pulled out of the race for Osaka (leaving Genting Group, Galaxy Entertainment and “Osaka First” MGM Resorts International), choosing to put its bet on Tokyo. Markets smaller than Tokyo, Yokohama and Osaka appear to be falling by the wayside.

Nor is Osaka a slam dunk. There are serious infrastructure problems related to the likely site, Yumeshina Island. Even MGM CEO Jim Murren acknowledged that Continue reading

Posted in China, Galaxy Entertainment, Genting, International, Japan, Las Vegas Sands, Macau, MGM Resorts International, New York, Taxes, Transportation, Tribal, Wall Street | Comments Off on Second thoughts on Japan; Seneca smackdown

Smoke gets in Boston’s eyes; Penn receives important award

Shuttles for Encore Boston Harbor are stirring up some local ire, due to the fumes they generate while idling at the Wellington MBTA Station curb. This has generated the threat of a lawsuit from the Conservation Law Foundation. It’s not just Wellington that’s at issue but also shuttle stops at the airport, other MBTA stations and anywhere else that a Wynn shuttle happens to lay over, usually 15 times a day. “The casino is a brand-new neighbor, and it’s already wearing out its welcome,” said CLF Massachusetts Director Alyssa Rayman-Read, who accuses Encore of violating both federal and Bay State clean-air laws. Wynn Resorts, for its part, rather meekly agreed to comply with state law vis-a-vis idling buses.

According to the Boston Globe, as buses idle they spew fumes that are “a soot that includes harmful pollutants such as benzene, sulfur dioxide, and nitrogen oxides. When inhaled, the exhaust can cause lung damage and aggravate conditions such as asthma and bronchitis, especially among Continue reading

Posted in Atlantic City, Churchill Downs, Cosmopolitan, Derek Stevens, Downtown, Encore, Entertainment, Illinois, Japan, Massachusetts, Movies, Penn National, Rush Street Gaming, Sheldon Adelson, Sports, Sports betting, Taxes, Technology, Terry Caudill, The Mob, Transportation, Wynn Resorts | Comments Off on Smoke gets in Boston’s eyes; Penn receives important award

Quote of the Day

“So long as men worship the Caesars and Napoleons, Caesars and Napoleons will duly rise and make them miserable.”—Aldous Huxley

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A swing through the Rust Belt

What does Ohio‘s economy have that other Rust Belt states do not? We’d really like to know, since Ohio consistently outperforms its brethren when it comes to gaming revenue. Last month, casino win was up 5.5% to $158.5 million. Racinos (up 8%) drove most of the gain. Only Hollywood Toledo blew it, down 1.5% to $16 million. The biggest gainer was Hollywood Dayton, leaping 14% to $10 million. Just a tenth of a percent behind was Jack Thistledown, grossing $12 million. Hollywood Mahoning Valley also impressed, jumping 10.5% to $11 million. In sheer dollar volume, MGM Northfield Park‘s $21 million (up 2%) led the state, while Hollywood Columbus was a distant second with $18.5 million (also up 2%).

Both of the “Jack”-branded casinos grossed $17 million, with Cleveland gaining 5% and Continue reading

Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, Dan Gilbert, DraftKings, Eldorado Resorts, Full House Resorts, GLPI, Hard Rock International, Illinois, Indiana, Kentucky, MGM Resorts International, Ohio, Penn National, Pets, Rush Street Gaming, Slot routes, Spectacle Entertainment, Sports betting | Comments Off on A swing through the Rust Belt

Quote of the Day

“There’s also an argument to be made that in a state with such high poverty rates—almost half the state’s residents are on Medicaid and one in four is on food stamps—it’s unconscionable to offer folks yet another avenue to lose the rent. Ditto for adding still another group of people who haven’t put in the sweat and tears of training to those who can make a buck on the backs of unpaid college athletes.”—editorial in the Albuquerque Journal, inveighing against Isleta Resort & Casino‘s inception of sports betting on college games.

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Stanley upstages Terry; Restaurant fees disputed

MGM China will be dropped from the Hong Kong bourse. Casino.org announced the change with this photo of Stanley Ho and Pansy Ho at the MGM Grand Macau opening. Somebody had a wicked sense of humor, cropping former CEO J. Terrence Lanni out of the picture, leaving just the Ho duo. Stanley Ho referred to the property as “my casino,” to the embarrassment of MGM. Even in his dotage, Ho is still stealing the limelight from the late Lanni.

In other Macao news, Wynn Resorts Vice Chair Linda Chen gives a preview of Crystal Palace, whose cost has already escalated from Continue reading

Posted in Architecture, Caesars Entertainment, Cosmopolitan, Dining, Macau, MGM Resorts International, Oklahoma, Pansy Ho, Resort fees, Stanley Ho, Taxes, The Strip, Tribal, Wall Street, Wynn Resorts | Comments Off on Stanley upstages Terry; Restaurant fees disputed

Wynn: Elaine did me dirty; New Jersey rakes it in

On the principle that two wrongs make a right, disgraced casino mogul Steve Wynn is accusing ex-wife Elaine Wynn of stirring up the Wall Street Journal story that ended his career. This comes by way of testimony by one Renée Palleggi that Mrs. Wynn paid her a six-figure sum to accuse Mr. Wynn of rape. Palleggi adds that Elaine Wynn gave the Journal the names of 150 women to ask about her husband’s sexual misconduct. Where there’s that much smoke there’s bound to be a modicum of fire. (Elaine Wynn denies the allegations.) The testimony comes as Steve Wynn tries to snuff out a lawsuit by former hairdresser Jorgen Nielsen that now-CEO Matt Maddox and others at Wynn Resorts engaged in espionage against him for having taken a public stand against Mr. Wynn. “They say Nielsen is a self-described close friend of Elaine’s and thinks she’ll benefit from his efforts,” reports Bloomberg.

For his part, Nielsen said he was deposed in favor of Continue reading

Posted in Architecture, Culinary Union, e-sports, Elaine Wynn, Election, Florida, Hard Rock International, Internet gambling, Law enforcement, Macau, MGM Resorts International, Nevada, New Jersey, New York, Politics, Resort fees, Sexual misconduct, Sports betting, Stanley Ho, Station Casinos, Steve Wynn, Taxes, Technology, Tribal, Wisconsin, Wynn Resorts | 1 Comment

Choo-choo to Springfield; Penn hawks Trop

Don’t despair, MGM Springfield. There’s hope yet. Massachusetts politicians are touting the idea of high-speed rail between Boston and Springfield, as many as six rides per day. (Springfield currently must get by with once-a-day Amtrak service.) Gov. Charlie Baker (R) has had a change of mind and now supports at least studying the idea.”The refurbished Springfield station, reopened in 2017 after decades of neglect, receives a regular parade of trains from Connecticut cities every day,” reports the Boston Globe, although this has not resulted in massive player defections from Mohegan Sun and Foxwoods Resort Casino, as MGM was hoping. Now it could vie for Encore Boston Harbor players … but not anytime soon, as rail projects have a propensity to Continue reading

Posted in China, Connecticut, Donald Trump, Downtown, Election, Foxwoods, Indiana, Louisiana, Maine, Massachusetts, MGM Resorts International, Mohegan Sun, New Hampshire, Penn National, Pennsylvania, Rhode Island, Sexual misconduct, Sheldon Adelson, Sports betting, The Strip, Transportation, TV, Twin River, Wynn Resorts | Comments Off on Choo-choo to Springfield; Penn hawks Trop

Quote of the Day

“I sincerely hope I have exhibited good moral character and will be able to vote my conscience on Donald J. Trump and his fellow American candidates.”—Neil Young, on his application for U.S. citizenship. Young’s stoner credentials might prove to be a stumbling block.

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