Vegas jottings, with a touch of Atlantic City

If we need a workplace consultant, we certainly won’t hire the Seyfarth Shaw at Work firm. (Seyfarth Shaw? Wasn’t he a character in Game of Thrones?) It’s offering its services to come up with strategies that will deter your employees from engaging in sports betting while on the job. Among several bad suggestions—like spying on your employees—comes this whopper: a managerial pep talk running thusly, “One thing that I am willing to ‘bet’ is that if we do not fast break back to our desks, we will all miss that customer deadline.” Wah wah wah.

* MGM Resorts International doesn’t like us to call them “robots.” They are Continue reading

Posted in Atlantic City, Caesars Entertainment, Culinary Union, Derek Stevens, Downtown, Entertainment, Golden Gaming, Las Vegas Sands, Marijuana, MGM Resorts International, Pets, Sheldon Adelson, Sports betting, Technology, Wynn Resorts | Comments Off on Vegas jottings, with a touch of Atlantic City

Quote of the Day

“A cantankerous press, an obstinate press, a ubiquitous press must be suffered by those in authority to preserve the even greater values of freedom of expression and the right of the people to know.” — Judge Murray Gurfein, upholding the Washington Post‘s right to publish the Pentagon Papers.

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The wrath of Icahn

Investment bankers BidaskClub aren’t buying Caesars Entertainment. Literally. In an almost-unheard-of development in gaming, Bidask put a “sell” recommendation on low-priced CZR shares. Perhaps this reflects caution over Caesars’ still-massive debt overhang or of the additional debt that would be undertaken in an Eldorado Resorts takeover. Either way, we’re glad to see somebody on Wall Street telling it like it is with the Roman empire, whose best years appear to be behind it. Meanwhile, having subjugated Caesars, Carl Icahn is poised to do the same to Occidental Petroleum, threatening to depose the board and sell off assets. (Sound familiar?) Icahn’s umbrage is motivated by a “fundamentally misguided and hugely overpriced” purchase of Andarko for $38 billion. In addition to faulting the Occidental executive team for being excessively compensated, Uncle Carl says the board  Continue reading

Posted in Arizona, Caesars Entertainment, Carl Icahn, CityCenter, Cosmopolitan, DFS, Eldorado Resorts, Illinois, Lotteries, Mandalay Bay Massacre, MGM Resorts International, Regulation, Resort fees, Sports betting, The Strip, Tilman Fertitta, Tribal, Wall Street, West Virginia | Comments Off on The wrath of Icahn

Quote of the Day

“Racism is the act of a loser. A winner doesn’t need to be a racist. A loser does.” — screenwriter Paul Schrader, author of Taxi Driver.

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Connecticut casino push stalls; Chicago casino fast-tracked

Connecticut casino legislation was yet another exercise in futility this session, with the Lege gaveling the end of business without any gaming bills being passed. However, a special session is anticipated, mainly to address an unrelated litigation settlement. Perhaps then solons will succeed in moving a bill to authorize a tribal casino in Bridgeport, something sure to send MGM Resorts International into a hot conniption fit. Indeed, the proposal—which would call for $100 million in state and civic subsidies—seems certain to draw litigation, at least from Gov. Ned Lamont‘s point of view. “Instead of resolving outstanding litigation, it puts the state at increased and immediate litigation risk from multiple parties,” said Lamont’s spokeswoman. Responded a tribal representative, “Litigation is part of the cost of doing business, whether you’re building a mall, a church or a casino.” This cautious stance comes as a reversal for Lamont, who had previously expressed support for the idea. Both Mohegan Sun and Foxwoods Resort Casino, who would presumably run the Bridgeport casino jointly, are banking so heavily on it that they continue to Continue reading

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Record year for U.S. casinos; Boyd lauded

While the gaming industry seems to be straining at the limits of how far it can expand in the good old U.S. of A. the numbers don’t lie: The casino industry posted a record $41.7 billion last year. That’s a 3.5% increase from 2017. State and local governments had to be happy, as they were rolling in $9.7 billion in direct taxes, not counting sales and income taxes, a “force multiplier” for the industry’s economic impact. In addition to the national record, 12 states reported record numbers at that level. Only two states suffered declines. Part of the growth was attributable to sports betting, up from $261 million to $430 million, and that’s just the beginning. Said American Gaming Association President Bill Miller, “More people than ever are experiencing the economic and social benefits of gaming in their communities, due in part to the expansion of legal sports betting across the country.”

As for downsides, the AGA stated, “Legal and regulated sports betting barely scratched the surface of an Continue reading

Posted in AGA, Boyd Gaming, Caesars Entertainment, Economy, Full House Resorts, Illinois, Indiana, Majestic Star, Penn National, Sports, Transportation, Wall Street | Comments Off on Record year for U.S. casinos; Boyd lauded

Merry month of May in Ohio, Missouri; MGM debuts “Hunger Games”

Casino revenues were booming last month in Ohio, leaping 10.5% to $169.5 million. People flocked to the racinos, which vaulted 13%. Hollywood Columbus gained 2% to $19 million and Hollywood Toledo inched 1% to almost $18 million. As for the tracks, Hollywood Dayton gained 13% for $9.9 million while Hollywood Mahoning Valley rocketed 18% upward to $11 million. Boyd Gaming was up 9.5% at Belterra Park ($8 million) and Eldorado Resorts hopped 12% ($17 million) at Scioto Downs. At erstwhile Hard Rock Rocksino, now MGM Northfield, $22 million was grossed on a 9% increase. Churchill Downs was 15% higher at Miami Valley Gaming, grossing $15.5 million. Jack Thistledown galloped 17% ahead to $13 million. In the major cities, Jack Cleveland pulled in 15% ($18 million) and Jack Cincinnati grossed $19 million, up 11%. When the news is this good there’s not much need to say anything more.

Speaking of good news, Missouri had it too, unlike Continue reading

Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, Dan Gilbert, Eldorado Resorts, MGM Resorts International, Missouri, Movies, Ohio, Penn National, The Strip | Comments Off on Merry month of May in Ohio, Missouri; MGM debuts “Hunger Games”

Wire Act reversal reversed; China scare for Las Vegas

A federal judge dealt a major defeat to the Justice Department in its efforts to reinterpret the Federal Wire Act as a ban on Internet gambling. Nope, only sports betting ruled Judge Paul Barbadoro. The ruling is a boon to New Hampshire and other states whose online lotteries were upheld. As for casino-style gambling, its status remains to be clarified, although the World Series of Poker took a victory lap. “Ultimately, the District Court failed to be moved by the DoJ’s grammatical re-interpretation of the Wire Act, namely a missing comma, and found instead on the basis of context,” although the issue seems certain to wind up in the lap of the Supreme Court. While sports betting across state lines is nixed, the legality of daily fantasy sports remains unclear. Among those who had reason to be chagrined was Sheldon Adelson, the DoJ’s disputed memo having parroted a legal brief filed by El Bombastico’s attorneys.

In an undercard, an unspecified number of Pennsylvania casinos Continue reading

Posted in Atlantic City, Caesars Entertainment, Economy, Eldorado Resorts, Entertainment, Florida, Hard Rock International, Indiana, International, Internet gambling, Law enforcement, Lotteries, Marketing, Mohegan Sun, Ocean Resort, Palms, Pennsylvania, Regulation, Seminole Tribe, Sheldon Adelson, Singapore, Sports betting, Station Casinos, Tourism, Tribal, Unite-Here, Wall Street, World Series of Poker | Comments Off on Wire Act reversal reversed; China scare for Las Vegas

Caesars deal takes shape; Carlino out at Penn

We hope Anthony Rodio isn’t getting too comfy in his CEO chair over at Caesars Entertainment. News reports have been heating up about at Caesars takeover, with Eldorado Resorts continuing to have the inside track and reportedly planning to replace Rodio et. al. with Eldorado management. The deal would happen by June 30 “assuming talks don’t fall apart.” Caesars has already rebuffed a $10.50/share offer (Eldorado shares dwarf Caesars ones in value) so obviously it’s feeling pretty confident about the whole thing. Wall Street observers are puzzled over Eldorado CEO Thomas Reeg‘s promise to cut $500 million from the Caesars budget. JP Morgan analyst Daniel Politzer doesn’t think there’s a lot of fat left on the imperial bone. Jobs and marketing would suffer, and Polizter foresees a scenario where Caesars’ Las Vegas hub is downsized to as few as three casinos and more regional spokes are added to the hub-and-spoke Total Rewards structure.

Politzer sees Eldorado keeping one Continue reading

Posted in Atlantic City, Boyd Gaming, Caesars Entertainment, Carl Icahn, DFS, Eldorado Resorts, Entertainment, GLPI, Iowa, Missouri, Neil Bluhm, Nevada, Penn National, Phil Ruffin, Problem gambling, Tilman Fertitta, Wall Street | 2 Comments

Quote of the Day

“The process that Illinois has gone through in the last couple of days of providing a Christmas tree amendment to have revenue be the driver as opposed to sound policy is not the way to craft good sports betting legislation. Many of the aspects of the bill throughout the debate on sports betting have been a race to the bottom.” — Global Market Advisors Director of Government Affairs Brendan Bussmann on gaming expansion in the Land of Lincoln.

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Honeymoon in Illinois; Contraction in Maryland

Illinois lawmakers think casino gambling is a bottomless well of revenue, as witnessed by their recent approval of five new gambling houses and three racinos (just for starters). However, last month’s actual revenues were less than auspicatory. At $118 million, they were down 2%, even with an extra weekend day to bolster the takings. In fairness to the industry, numbers were roughly flat once Argosy Belle, rendered hors de combat due to flooding, is subtracted from the mix.  The Belle was down 69%, bringing in an uncool million. Customers evidently took their business to Casino Queen, up 15% to $9 million. Harrah’s Metropolis may have also picked up some business lost elsewhere, up 10.5% to $7 million. At Par-A-Dice, owner Boyd Gaming clawed back business lost to slot routes, rising 4% to $6.5 million. So there’s room for hope, at least in the near term.

Usual state leader Rivers Casino was down 6% to $39.5 million, while Grand Victoria had another off month, slipping 5% to $13 million. Every other northern-tier riverboat was Continue reading

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Plaza gets a refresh; MGM covets Vegas locals

Congratulations to Plaza Hotel CEO Jonathan Jossel. He’s persuaded tight-fisted Tamares Group to invest in a 112-room renovation of the Downtown dowager. The casino is reportedly coming off its best April ever and this has evidently helped Tamares to see its way clear to capex maintenance, budgeted at $15 million. (Tamares may have opened its fist a bit but it’s not going whole hog.) “We listened to our guests, and one of their biggest issues were with the old-style key card systems for the rooms. We upgraded all of that to RFID last year. We’re using our own resources through our profits to reinvest in the property,” Jossel told the Las Vegas Weekly. The new room product should be ready by next month. As for competitor-to-be Circa, Jossel—like Boyd Gaming CEO Keith Smith—welcomes it as a tide that will lift all boats, part of a larger Downtown renaissance.

Encore Boston Harbor is pulling out all the stops for its opening. In addition to a concert by Continue reading

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Quote of the Day

“You are among the very greatest Americans who will ever live. You are the pride of our nation. You are the glory of our republic. And we thank you from the bottom of our hearts.” — Donald Trump, addressing World War II veterans on the 75th anniversary of D-Day.

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Secret deal in Bridgeport?; Packer/Ho sale threatened

“There is no ‘either/or’ solution when it comes to East Windsor and Bridgeport, and we shouldn’t be playing two Connecticut communities against each other.” That’s what tribal spokesman Andrew Doba said after it was revealed that Bridgeport was flirting with Foxwoods Resort Casino and Mohegan Sun, a move sure to enrage MGM Resorts International, which had dibbed Bridgeport for a megaresort. Said Doba, “both municipalities can play a critical role in helping us to maximize jobs and revenue for Connecticut. We continue to have conversations with the administration, legislative leaders, the Bridgeport delegation and the mayor on a global solution that will also bring some level of investment in the Park City.”

Meanwhile, the office of Gov. Ned Lamont (D) is pleading Continue reading

Posted in Australia, California, Cirque du Soleil, Connecticut, Crown Resorts, e-sports, Entertainment, Foxwoods, Galaxy Entertainment, Las Vegas Sands, Lawrence Ho, Macau, Melco Resorts & Entertainment, MGM Resorts International, Mohegan Sun, Pennsylvania, Regulation, Sociedade de Jogos de Macau, Sports betting, Stanley Ho, Wynn Resorts | 1 Comment

The Sahara returns, hurray

Proving that you can’t keep a classic brand down, Alex Meruelo is ditching meaningless SLS Las Vegas and bringing back Sahara Hotel & Casino for the place locals never stopped thinking of as “the Sahara.” It’s too late to restore the Arabian Nights theming that Sam Nazarian extirpated but changes are already afoot. Scott Roeben reports that Cleo is out, along with 800 Degrees Neapolitan Pizza and Umani Burger. Making a return will be the Casbar Lounge. You’d think Meruelo has his hands full but VitalVegas says he’s got another Las Vegas casino purchase in the works. Considering that Meruelo, unlike Nazarian, has gaming in his blood we can’t wait to see what he does for a second act.

* In a concession to aggressive hedge fund Corvex Management, which had been building up a stock position, MGM Resorts International has ceded Continue reading

Posted in Alex Meruelo, Carl Icahn, Dining, Environment, GLPI, Louisiana, Maryland, MGM Resorts International, Penn National, Sahara, Sam Nazarian, SLS Las Vegas, The Strip, Wall Street | 1 Comment

Runaway greed in Illinois

Existing operators in Illinois are picking themselves up off the floor following an exponential expansion of casino gambling in the Land of Lincoln, achieved in the waning hours of the legislative session. Caesars Entertainment, Penn National Gaming, Boyd Gaming, Eldorado Resorts and Churchill Downs all will take it on the chin from the new law, which Gov. Jay Pritzker (D) is expected to sign. “Possible litigation can be filed as a way to delay, but it likely won’t derail the bill’s eventuality,” writes JP Morgan analyst Joseph Greff. The bill’s components are as follows: a 4,000-position casino in Chicago (1 slot = 1 position, 1 table = 6), five more of 2,000 positions apiece in the Chicago suburbs, 1,200 gaming positions per racetrack, for a total of three racinos, legalized sports betting (both mobile and brick-and-mortar) including sports venues holding 17,000 people or more, slot routes increased from five machines to six per site (the equivalent of six additional casinos), slot routes at airports, increased slot-route bets from $2 to $4 per hand, a higher slot-rate tax rate of 34% and a 15% tax on sports bets.

The lone concession made to pre-existing casinos was that they can Continue reading

Posted in Boyd Gaming, Caesars Entertainment, Churchill Downs, DFS, Eldorado Resorts, Illinois, International, Penn National, Politics, Taxes, Wall Street, Wynn Resorts | 1 Comment

More Ho, less Packer at Crown; Wynn pays the piper

More Lawrence Ho at Crown Resorts means less James Packer, as the publishing heir sold down his stake to 25%, spinning the decision thusly: “I am still vitally interested in Crown’s success as a world-class resort and gaming business. The sale allows me to continue my long term involvement with Crown and at the same time to better diversify my investment portfolio.” One news report said that recent photos of Packer showed him to be “in better mental and physical shape.” How do you quantify mental health from a photograph? The younger Ho has previously been licensed in Australia, so the grinning ghost of Stanley Ho should not be a problem. The deal got a favorable notice from Roth Capital Partners analyst David Bain, who wrote, “We view Melco’s transition toward a fully international entertainment resort company as helpful to its stock multiple and beneficial for its competitive bid for a casino concession in Japan.” (Wynn Resorts, having tried and failed to buy Crown, is tipped as a potential takeover candidate in the Pacific Rim.)

Speaking of Japan, Osaka Mayor Ichiro Matsui blasted Continue reading

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Casinos, DFS wrangle in Massachusetts; Harrah’s wins in Louisiana

Debate over sports betting in Massachusetts has brought out a ruction between Boston-based DraftKings, representing the forces of online gambling, and brick-and-mortar casinos, which want to be the sole purveyors of Internet sports bets, with maybe five to seven ‘skins’ permitted in the Bay State. For its part, DraftKings warns that taxes and revenue projections are too high, pointing to shortfalls in other states. Representing the opposition, MGM Springfield President Michael Mathis said his company doesn’t oppose direct operation by the likes of DraftKings but that things would be better if the betting were routed through a casino company: “You can do it directly, but you’d be better protected doing it as sublicenses.”

Meanwhile, the major leagues are whining for—you guessed it—”integrity fees,” better known as ‘a piece of the action.’ Their pound of flesh is set at 0.25% of revenue. They also oppose prop bets, which they believe are a corrupting influence. (Would Chris Sale throw Continue reading

Posted in Caesars Entertainment, Churchill Downs, DFS, Entertainment, Genting, Internet gambling, Las Vegas Sands, Law enforcement, Louisiana, Massachusetts, Melco Resorts & Entertainment, MGM Mirage, Phil Ruffin, Politics, Problem gambling, Rhode Island, Sports, Sports betting, Taxes, The Strip | Comments Off on Casinos, DFS wrangle in Massachusetts; Harrah’s wins in Louisiana

Memo from Murren

The MGM 2020 axe continues to fall. Company employees received the following open letter from CEO Jim Murren

“Dear Colleagues:

“I want to begin this note by thanking so many of you for your patience, support and focus over the last several months. Redesigning an organization to achieve transformational change is difficult; I have been deeply impressed with your personal leadership and commitment to embracing the challenging task of implementing MGM 2020.

“Just as I did previously, I am reaching out to keep you informed as we conduct the second and final round of major organizational changes that have been planned as part of 2020. Since our last round of position eliminations, we have made additional organizational changes to leadership structures that resulted in Continue reading

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Quote of the Day

“Our birthdays are feathers in the broad wing of time.” — German novelist Johann Paul Richter.

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