Steve Wynn, get lost

Posted on October 17, 2019 by David McKee

Steve Wynn thinks he’s above the Nevada Gaming Control Board. Perhaps he still imagines himself to be “the most powerful man in Nevada.” Either way, he failed to show up for an NGCB hearing on September 7, 2018, showing his disdain for Silver State regulators and the rules by which everybody else plays. In return, the NGCB asserts that Wynn “is not a person of good character, honesty, and/or integrity [who is] unsuitable to be associated with a gaming enterprise or the gaming industry as a whole.” At issue are literally dozens of accusations of sexual misconduct by Wynn toward Continue reading →

Posted in Australia, China, e-sports, Environment, Japan, MGM Resorts International, Oregon, Politics, Regulation, Sexual misconduct, Sports betting, Steve Wynn, Tribal, TV, Wynn Resorts | 1 Comment

Ocean surges in Atlantic City; Wall Street yawns at MGM sale

Posted on October 17, 2019 by David McKee

Atlantic City gambling revenue was off 3% last month and we’ll be generous, chalking it up to one less weekend day than last year. The Boardwalk grossed $224.5 million, led by Borgata with $57.5 million (a 5% slippage). Table win was down 1.5% on 3.5% less wagering, while slot win decline 6.5% on 12% less coin-in. The Caesars Entertainment trio fell 9.5% led by a 17% plummet at the tables (10% less betting) and a 6% slide at the slots, where coin-in dropped 9%. Eldorado Resorts, however, ought to look at putting its own house—the Tropicana Atlantic City—in order, as gaming revenue plunged 15% to $25.5 million, receding into fourth place. Hard Rock Atlantic City was second with $29.5 million (+14%), followed by Harrah’s Resort ($26.5 million, -2%).

Ocean Casino Resort posted an unbelievably strong performance, just shy of $21 million, surging 38.5% (!). All other casinos were revenue-negative. Bally’s fell 12.55 to $14.5 million, Caesars Atlantic City tumbled Continue reading →

Posted in Atlantic City, Boyd Gaming, Caesars Entertainment, Eldorado Resorts, Greenwood Racing, Hard Rock International, Internet gambling, Japan, MGM Resorts International, Mohegan Sun, Nevada, New Jersey, Ocean Resort, Penn National, Pennsylvania, Phil Ruffin, Real Estate, Rush Street Gaming, Sports, Sports betting, The Strip, Tilman Fertitta, Tribal, Wynn Resorts | 3 Comments

Quote of the Day

Posted on October 17, 2019 by David McKee

“I spent half my money on gambling, alcohol and wild women. The other half I wasted.”—W.C. Fields

Posted in Movies | Comments Off on Quote of the Day

Boyd, Penn upbeat; DeSalvio leaves Encore Boston

Posted on October 16, 2019 by David McKee

J.P. Morgan analyst Joseph Greff continued his listening tour of Global Gaming Expo, meeting with Boyd Gaming CFO Josh Hirshberg. “We come away positive and highlight BYD’s attractive free cash flow generation and ensuing de-leveraging,” Greff reported. Despite wider concerns (“trade talks, manufacturing slowing”), Boyd saw steady business across its base of regional casinos and expects growth to continue, admittedly at a slower pace “(largely reflective of multiple years of growth as opposed to any fundamental weakness).” The Las Vegas market continues to burgeon, thanks to construction, a growing market of sports teams and a stable economy. “Over the next 18 months, BYD will monitor the potential impact for new competition near Blue Chip [in Indiana] as well as the impact from Circa in Downtown LV, which is expected to open December 2020.” Boyd doesn’t seem to be too worried about Continue reading →

Posted in Boyd Gaming, Derek Stevens, Detroit, Dining, G2E, Illinois, Indiana, Massachusetts, MGM Resorts International, Mississippi, Palms, Penn National, Pennsylvania, Slot routes, Sports betting, Station Casinos, The Strip, Wall Street, Wynn Resorts | 1 Comment

Bellagio, Circus Circus sold

Posted on October 16, 2019 by David McKee

Back on Sept. 17 we reported that MGM Resorts International was dickering with Blackstone Group to sell the latter Bellagio and MGM Grand. Well, the Green Monster got left out of the transaction but MGM’s most iconic property will change hands, for a king’s ransom. They say everything is for sale for the right price and, in Bellagio’s case, that price was $4.2 billion plus 5% equity in the house of dancing water. Blackstone, which had been peddling The Cosmopolitan of Las Vegas, now finds itself a buyer rather than a seller (although unloading the Cosmo would free Blackstone from the cost of operating it). Under the terms of the deal, MGM will continue to run Bellagio (Why not?) for $245 million a year.

As for the motivation, maybe this is CEO Jim Murren‘s revenge on the venerable Continue reading →

Posted in Caesars Entertainment, Cosmopolitan, Japan, Macau, Marketing, Massachusetts, MGM Resorts International, Phil Ruffin, Sports, Steve Wynn, The Strip | Comments Off on Bellagio, Circus Circus sold

Should we ban Steve Wynn?; Caesars vote set

Posted on October 15, 2019 by David McKee

Perhaps anticipating the expiration of Steve Wynn‘s noncompete agreement with Wynn Resorts, the Nevada Gaming Control Board has filed a complaint against El Steve in court, saying he brought “discredit” upon the state of Nevada, reports KTNV-TV. Could this be first step toward banning him? Should Steve Wynn ever be allowed to own a casino again? The precedent is an unflattering one: Ralph Engelstad and his Adolf Hitler birthday parties at the Imperial Palace (now Linq). Engelstad was fined up the wazoo and made to eat crow. But he kept his casino. Wynn will show no such contrite inclination. He has been not only unrepentant but Continue reading →

Posted in Caesars Entertainment, California, Carl Icahn, Cordish Co., Dining, Economy, Eldorado Resorts, Environment, Hard Rock International, history, Las Vegas Raiders, Louisiana, Marketing, Maryland, Massachusetts, Mohegan Sun, Regulation, Sexual misconduct, Steve Wynn, Tribal, Wall Street, Wynn Resorts | 2 Comments

Quote of the Day

Posted on October 15, 2019 by David McKee

“There was a sense that we’d better move fast—this thing is on top of us. It’s as much an expression of principle and general sense of values as it is expected to be some sort of hard and fast rule, where we’re out to punish people … This just may be the first stab, as we learn more and see what happens.”—Purdue University President Mitch Daniels on his board of trustees’ decision to ban sports betting by students, faculty, staff and contractors.

Posted in Regulation, Sports betting | Comments Off on Quote of the Day

Trail of breadcrumbs; Survey says …

Posted on October 15, 2019 by David McKee

Waiting for “breadcrumbs to fall off the truck.” That’s Gaming & Leisure Properties‘ self-described business plan. GLPI execs, including CEO Peter Carlino (left), were in Las Vegas for Global Gaming Expo and took the opportunity to chat with J.P. Morgan analyst Joseph Greff. Salient takeaways from the meeting included: Continue reading →

Posted in AGA, Cosmopolitan, Economy, Entertainment, GLPI, history, Las Vegas Sands, MGM Mirage, Penn National, Real Estate, The Strip, Tourism, Tribal, TV | Comments Off on Trail of breadcrumbs; Survey says …

Quote of the Day

Posted on October 14, 2019 by David McKee

“The greatest obstacle to discovering the shape of the earth, the continents, and the oceans was not ignorance but the illusion of knowledge.”—Daniel J. Boorstin

Posted in history | Comments Off on Quote of the Day

Many fewer Vegas knots tied; Golden Nugget expands

Posted on October 14, 2019 by David McKee

One of Las Vegas‘ mainstays and signature stocks in trade, its wedding industry, is down 42% (yes, 42%) from its 2004 peak. Mind you, it’s still a $2.5 billion business. But the quickie-wedding trade may be hurting and that wouldn’t be a bad thing. Not only does it demean the institution of marriage, it gives Vegas a bad name. (Not for nothing did my wife and I go out of state to tie the knot.) Says County Clerk Lynn Goya, “We can’t afford to take our number-one status for granted.” Reports the Boston Globe, “it’s no secret that marriage rates in the United States have dwindled significantly in the wake of Continue reading →

Posted in Charity, Cirque du Soleil, Dining, Downtown, Economy, Election, Entertainment, Internet gambling, Kentucky, MGM Resorts International, Real Estate, Shuffle Master, Sports betting, Technology, Terry Caudill, The Strip, Tilman Fertitta, Wynn Resorts | Comments Off on Many fewer Vegas knots tied; Golden Nugget expands

Hard Rock debacle; Mohegan Sun reaches from Grecian sky

Posted on October 14, 2019 by David McKee

When I first heard the phrase “Hard Rock Hotel collapse” over the weekend, I thought something had gone awry in the final stages of Hard Rock Hollywood, set to open Oct. 24. But no, it was a Hard Rock project in New Orleass that tragically crumpled, killing two and injuring 30. So precarious was the situation in the Big Easy (feeling more than a bit uneasy) that search-and-rescue operations were Continue reading →

Posted in Architecture, Cordish Co., Hard Rock International, International, Law enforcement, Louisiana, Maryland, Mohegan Sun | Comments Off on Hard Rock debacle; Mohegan Sun reaches from Grecian sky

Wall Street rates Vegas, Macao; Tribes skirmish in Illinois

Posted on October 11, 2019 by David McKee

Credit Suisse analyst Ben Combes turned his attention to three major Las Vegas companies, starting with MGM Resorts International. He’s staying neutral on the giant, writing, “We see Las Vegas as a cyclical but long-term growth market, given strong leverage to US and global travel. We see defensive, domestic growth in Regional markets, with some supply growth. We are positive on the long-term outlook for Macau but think the next few months could be volatile, given macro, geopolitical, and licensing risks.”

On the upside, Las Vegas is seen as “a bright spot in gaming” and proprietary survey data is overwhelmingly positive: 10% room-rate growth in 3Q19 and 8% in 4Q19; convention attendance up 22% the rest of the year and airline capacity could be up as much as 6%.

Over in Macao, “China macro risks are well flagged, and China is easing Continue reading →

Posted in China, Conventions, Economy, Illinois, Indiana, Las Vegas Sands, Macau, MGM Resorts International, Pennsylvania, Politics, Tourism, Transportation, Tribal | Comments Off on Wall Street rates Vegas, Macao; Tribes skirmish in Illinois

Big Hoosier handle; Caudill empire expands

Posted on October 11, 2019 by David McKee

Indiana sports books generated $35 million in handle last month, translating to $8.5 million in revenue, taxed at 9.5%. “Indiana’s sportsbooks are in their infancy, but their ability to capitalize on the Chicago market did not take long to produce dividends,” said Dustin Gouker, lead analyst for PlayIndiana.com. “This is the largest handle we’ve seen in a state’s first month of legal sports betting, and it happened without the benefit of online sports betting, which didn’t launch until October. Participating casinos were Continue reading →

Posted in AGA, Boyd Gaming, Caesars Entertainment, Derek Stevens, Diversity, Downtown, El Cortez, Eldorado Resorts, Illinois, Indiana, Massachusetts, Penn National, Real Estate, Sports betting, Taxes, Technology, Terry Caudill, The Mob, The Strip, Wayne F. Newton, Wynn Resorts | Comments Off on Big Hoosier handle; Caudill empire expands

Quote of the Day

Posted on October 11, 2019 by David McKee

“I was extremely disappointed by the comments that I heard in the way that I understood them.— Tiburon Strategic Advisors Managing Partner Chip Roame, banning aging billionaire Ken Fisher from future Tiburon conferences, after Fisher stunned an audience with a graphic sexual analogies.

Posted in Sexual misconduct, Wall Street | Comments Off on Quote of the Day

What’s in a day?

Posted on October 10, 2019 by David McKee

Ohio and Illinois weathered a September with one less weekend day just fine. Indiana and Missouri, not so much. The Hoosier State was down 2.5% (on a weak comparison). The gross was $173 million. There were some big swings and roundabouts, but too isolated to allow for generalizations. In the northern tier, Horseshoe Hammond continued to be a powerhouse, up 7% to $34 million. Majestic Star I was also revenue-positive, up 1% to $7 million. No such luck at Majestic Star II, tumbling 9% to $4.5 million. Blue Chip (pictured) was flat at $13 million and Ameristar East Chicago shed 5.5% to gross $17 million.

In southern Indiana, Boyd Gaming got absolutely hammered at Continue reading →

Posted in Boyd Gaming, Caesars Entertainment, Eldorado Resorts, Full House Resorts, Indiana, Missouri, Penn National, Racinos, Spectacle Entertainment, Tropicana Entertainment | Comments Off on What’s in a day?

Quote of the Day

Posted on October 10, 2019 by David McKee

“I regret I accepted that speech invitation because it was kind of a pain in the neck.”—money manager Ken Fisher, after he shocked a San Francisco audience by likening landing a client to “trying to get into a girl’s pants.”

Posted in Sexual misconduct, Wall Street | Comments Off on Quote of the Day

Suncoast for sale?; Downtown, Trump Int’l stuck in 20th century

Posted on October 10, 2019 by David McKee

In a cryptic real estate listing, LoopNet has Suncoast emblazoned across the top of its splash page. However, the company says “This listing is not currently being advertised on LoopNet.com” So what the Sam Hill is it doing there? Is Boyd Gaming trying to flash a bit of ankle at potential buyers (even archnemesis Station Casinos would be interested)? Only CEO Keith Smith knows for sure. Also, Tony Hsieh appears to be cashing out of some of his Downtown Project agglomeration of motels, if my eyes don’t deceive me. The conversion of Downtown into Hsiehville has stalled in recent years, so a liquidation would not come as a surprise. (Thanks to an eagle-eyed S&G reader for the tip.)

* New York State‘s Seneca Nation has been playing hardball with state and local governments, ending revenue-sharing payments on the grounds that there was no Continue reading →

Posted in Boyd Gaming, Caesars Entertainment, Connecticut, Donald Trump, Downtown, Foxwoods, Las Vegas Sands, MGM Resorts International, Mohegan Sun, New York, Real Estate, Resort fees, Taxes, Technology, The Strip, Tilman Fertitta, Tribal | 2 Comments

Quote of the Day

Posted on October 9, 2019 by David McKee

“I have just been all round the world and have formed a very poor opinion of it.”—Sir Thomas Beecham

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Hard Rock ratified; Get high at Grand River

Posted on October 9, 2019 by David McKee

Rockford‘s city council ratified Mayor Tom McNamara‘s selection of Hard Rock International, 11-1. Even casino opponent Alderman Frank Beach voted aye, saying, “My vote tonight is really not for a casino in Rockford. But it’s the best way to block the unregulated [read: tribal] casino from moving forward in Beloit.” Alderwoman Venita Hervey requested a bit of old-fashioned Illinois graft, asking Hard Rock to spread some money in her ward, even though the casino isn’t going there. The recommendation now Continue reading →

Posted in Hard Rock International, Illinois, Law enforcement, Regulation, South Dakota, Tribal | Comments Off on Hard Rock ratified; Get high at Grand River

Bad news all around

Posted on October 9, 2019 by David McKee

Oyo, owner of the former Hooters Casino Hotel, is trying to get out of debt by … incurring more debt. The company raised $2 billion in debt last summer, including a $700 million infusion from company founder Ritesh Agarwal. Oyo’s strategy is to stay in front of the collection agency by expanding as fast as it can. Most of the company’s market presence is in timeshares but it vowed that its Hooters purchase was only its first in Sin City. We shall see. In the meantime, Oyo is heavily dependent on the India and China markets, from which it gets 80% of its revenue. It also raises money through Continue reading →

Posted in China, Colorado, Hooters, International, Internet gambling, Law enforcement, New York, Problem gambling, Sexual misconduct, Station Casinos, Tribal, Wall Street, Washington State | Comments Off on Bad news all around