Atlantic City’s glass half-full; New Kentucky casino pitched

First, the good news: Casino-related employment in Atlantic City rose by 5,749 jobs last year, driven by Hard Rock Atlantic City and Ocean Resort, which added 6,927 souls to the work force. The bad news? Hiring remains otherwise stagnant, with Hard Rock and Ocean Resort both trimming their work forces by about 15% as the year wore on. Economic analyst Jim Kennedy, late of the Casino Reinvestment Development Authority cautioned that all the hiring has not translated into a wider economic benefit, such as housing starts or non-casino jobs. “When you hire the numbers of employees that we’ve seen at the two new casinos, there are usually secondary benefits. None of that has happened,” Kennedy told The Press of Atlantic City.

Understated Division of Gaming Enforcement Executive Director Daniel Rebuck, “We had a lot of bad years, but for the last few years we’ve been in a better position than we were three or four years ago. We just need to Continue reading

Posted in Atlantic City, Boyd Gaming, Bruce Deifik, Economy, Greenwood Racing, Hard Rock International, Internet gambling, Kentucky, Massachusetts, MGM Resorts International, Mohegan Sun, New Jersey, Pennsylvania, Racinos, South Dakota, Sports betting, Taxes, Tribal | 1 Comment

Quote of the Day

“We want to lead by being good, not by being profitable. We think of profits as a byproduct of the new experience.” — SCP Hotels CEO Ken Cruse on his brand’s wellness-oriented, name-your-price business model.

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Quote of the Day

“When you get past all the glitz of Enigma—the ornately choreographed dancing, the elaborate stunts, the animations that play on the giant screen—you’re left with a show that fully embraces and celebrates the lifestyles of its audience. Enigma isn’t just a concert, but a pop art rally that exults in the wide spectrum of humanity and sexuality, inviting all and only chastising those whose minds are tainted by bigotry and prejudice.” — Garrett Martin, reviewing Lady Gaga‘s Park MGM spectacular.

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Sports books take Super Bowl hit

With 75% of bettors wagering on the New England Patriots, plus a “george” 53-1 side bet for in-store credit, FanDuel got taken to the woodshed during Super Bowl LIII, losing $5 million. “All of this combined to leave New England as the big loser for the FanDuel Sportsbook,” the nascent powerhouse admitted sportingly. “Very big in fact.” Johnny Avello, who has traded in Wynn Resorts for DraftKings, said his new employer lost “very little” on the scantily watched game (which had the lowest Super Bowl ratings in a decade), despite paying out $11 million in wagers. While bets were off a bit in volume in Nevada, it was a good weekend for players there, too, as they took home almost $11 million of the $146 million handle, far better than last year.

Sports betting might be an easier path to new revenue for Illinois than casino expansion, which the Lege has been circling for a decade without Continue reading

Posted in Architecture, Arizona, Economy, Genting, Illinois, Las Vegas Sands, Marketing, New Jersey, Politics, Problem gambling, Resort fees, Singapore, Sports betting, Taxes, Texas | Comments Off on Sports books take Super Bowl hit

Quote of the Day

“Just what America needs: Another paid holiday.” — The Grinch, aka Sen. Mitch McConnell (R) on the idea of making Election Day a federal holiday. (At S&G we get no paid holidays so our concern is purely altruistic.)

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New name, new push for Foxwoods/Mohegan casino; Nevada casinos robust

Tribal Winds. That’s what Mohegan Sun and Foxwoods Resort Casino are going to call their joint venture in East Windsor, Connecticut. The duo has already spent $14 million on the $300 million project. Both of the tribes involved are not concealing their ire at the Department of the Interior for not signing off on the project, which is pending approval by the state Lege, or at MGM Resorts International, which they feel has laid a heavy thumb on the scales of justice. “Heavy lobbying by MGM in the last 48 hours prior to those approvals is what halted it,” says Mohegan Tribal Nation Chairman Kevin Brown. (Compact changes with Mohegans have been approved, those with the Mashantucket Pequots not.) This has prompted area lawmakers to push for a state-level workaround. The quickest path would be to amend the 2017 law allowing Tribal Winds by removing its mandate for federal approval. Former Interior secretary Ryan Zinke faces scrutiny over the possibility that he may have lied to investigators when asked about Tribal Winds. In the meantime, state lawmakers are tempted to revisited the Nutmeg State’s tribal compacts, swayed by MGM’s promise of billions in investment, should a casino concession in Bridgeport be approved. MGM’s pitch has lost some of its persuasiveness as competition from Continue reading

Posted in Connecticut, Economy, Foxwoods, Macau, Massachusetts, MGM Resorts International, Mohegan Sun, Nevada, Politics, Sports betting, The Strip, Tourism, Tribal, Wendover | Comments Off on New name, new push for Foxwoods/Mohegan casino; Nevada casinos robust

Super Bowl hits and misses; Sigma Derby rides again

Super Bowl LIII is over and viewers are left to ponder such existential questions as “Is Julian Edelman a Hall of Famer?” and “Why are all NFL kickers bald?” The New England Patriots did the most important thing, i.e. covering the spread in a game that saw more first-half Los Angeles Rams punts (six) than total Rams points scored (three). Early money favored the Rams by a point but an influx of sharps bets moved the line in New England’s favor. However, sports books missed big time in the projection of 57 total points scored. Whoops. Oddsmaker Pete Prisco gets a nod for prophetic skill: “The Patriots don’t blow out teams in the Super Bowl, and they won’t here. In fact this one will come down to a late Tom Brady drive. This time, which will be different from their first Super Bowl meeting, he will need to get a touchdown late to win it. And he will.” The league would like to censor prop bets but sports books aren’t having any of that. Still, Nevada books didn’t take action on the over/under of Gladys Knight‘s protracted “Star Spangled Banner,” perhaps because there was so much ambiguity as to when the Queen of Soul actually finished her rendition.

It’s not known whether any of the prop bets included “Halftime hip-hot artist spews obscenities into a hot mike” but who’d bet Continue reading

Posted in Derek Stevens, Downtown, Entertainment, history, International, Marketing, MGM Resorts International, Paragon Gaming, Sigma Derby, Sports, Sports betting, Technology, TV | Comments Off on Super Bowl hits and misses; Sigma Derby rides again

So long, Total Rewards; MGM goes to Yonkers

Despite one less weekend day than 2017, December was good for the Las Vegas Strip. Visitation was up over 2% and room revenues leapt 16% to an average of $104/room. This was particularly impressive given a 23% decline in convention attendance. Even with so many fewer conventioneers, hoteliers were able to push room rates almost 12% higher, to an average of $128/night, on 81% occupancy (87.5% on weekends). Visitors to Vegas numbered nearly 3.3 million, with 222,000 of them conventioneers. Drive-in traffic was strong, up 4%, with a 3% increase in Californians.

By the way, it’s goodbye Total Rewards, say hello to Caesars Rewards. While we’re loath to part with a catchy moniker, Caesars is the best brand name in gambling and the company has underutilized it, particularly during the Gary Loveman regime, so we like the change on balance.

* MGM Resorts International closed on its purchase of Empire City Casino/Yonkers Raceway, an $850 million deal with the Rooney family that adds 5,200 VLTs to the MGM inventory. However, the lion would prefer a Vegas-style casino, complete with table games. The racino also comes with 50 undeveloped acres, so are you thinking what I’m thinking? (Megaresort.) Also, with New York City practically within his grasp, will MGM CEO Jim Murren still want a casino in Connecticut? (Probably yes.) MGM is so flush with cash right now that Continue reading

Posted in Caesars Entertainment, Economy, Harrah's, International, Internet gambling, Macau, Marketing, Massachusetts, MGM Resorts International, New York, Regulation, Sexual misconduct, Steve Wynn, Taxes, The Strip, Tourism, Transportation, Wynn Resorts | Comments Off on So long, Total Rewards; MGM goes to Yonkers

Quote of the Day

“Fighting during divorce in New York today is like going to a casino, which is the court and the entire legal system. There are many games you can play in divorce when you get there, some are high stakes, and some are penny slots, but at the end, the longer you stay in this divorce process and play, the more likely it is that you will lose all your money to the House.”  — divorce attorney Val Kleyman.

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Vegas: Locals outperform the Strip; Sisolak nuked

Nevada gaming revenue was up 4% last month, just a few hundred thousand shy of an even billion dollars, even though the Las Vegas Strip was relatively stagnant. Strong baccarat win by the house (jumping 14.5%) was offset by 3% less win in other games. Slot win was up 6% ($292 million) despite flat coin-in. The house lost big-time on table games, with 3% less win on 9% greater wagering. Las Vegas locals casinos cleaned up, with slot win — possibly fattened by late-November coin-in — vaulting 23% for an overall gain of 20%, on 2% higher coin-in and despite on less weekend day. The Strip grossed $566 million, while Downtown checked in with $59 million (26.5% higher) and North Las Vegas leapt 18% to $23 million. The Boulder Strip rocketed 45% higher, to $68 million, and miscellaneous Clark County casinos raked in $100.5 million for an 8% hop. Laughlin was a comparative underachiever, up only 4.5% on $32.5 million. Reno slipped 2.5% to $54 million while Lake Tahoe skilled 9% to finish with $17 million.

Cameron McKnight of Credit Suisse called the Strip numbers “Very good … even against higher expectations … shows the (important) everyday gambler is Continue reading

Posted in AGA, Aristocrat, Boulder Strip, Donald Trump, Downtown, Environment, IGT, Lake Tahoe, Laughlin, Mesquite, Nevada, Regulation, Reno, Scientific Games, South Carolina, Sports, Sports betting, The Strip, Wall Street | Comments Off on Vegas: Locals outperform the Strip; Sisolak nuked

Wynn finishes strong

If Wynn Resorts wanted to change the subject of conversation, at least on Wall Street, away from the damning Nevada Gaming Control Board report on sexual harassment it found a magical elixir in its fourth-quarter report. Net revenue at Wynncore was up 3% to $393.5 million, Wynn Macau slipped 5% to $553.5 million but Wynn Palace jumped 13% to $740.5 million. Impressive. It helped make up for a 60.5% cost increase in the “executive expense” category. Occupancy at Wynncore ran at 88.5%, room rates averaged $315 and room revenues were $279/average (up 13%, besting Las Vegas Sands‘ 6%). Table game wagers increased 18% to $508.5 million, slot coin-in was up 8.5% to $904.5 million and win/slot/day was $350, up 4.5%. Table revenues were $114 million, slots $58.5 million, increases of 12.5% and 3% respectively. On the other side of the ledger, promotions and discounts were up 19% as Wynn Resorts spent $67 million to buy business. The Macao-derived revenues were 11% higher than Wall Street consensus expected.

Credit Suisse analyst Cameron McKnight chalked up the Macanese results to “extreme volatility which “explained the variance versus management’s dire November guidance” and noted that the Strip was bolstered by Continue reading

Posted in Caesars Entertainment, Economy, Las Vegas Sands, Macau, Massachusetts, Regulation, Tourism, Wall Street, Wynn Resorts | Comments Off on Wynn finishes strong

Quote of the Day

“Progress then and now comes from the collision of powerful forces within the hearts of those who strive for it. Anger and charity, love and hate, pride and shame, broken down and reassembled in an igneous process that yields a fierce resolve.” — Sidney Poitier

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Pac-12 to Vegas?; Climate change rattles travel industry

Pac-12 football championship play could be coming to Las Vegas. I emphasize the “could” because there are several moving parts to this story, including the possibility that Las Vegas and Los Angeles are pawns in the conference’s attempts to shake down Santa Clara for a better deal. Both cities are building stadiums and both of those venues would be in relatively close proximity to a major international airport, Los Angeles’ new stadium would be four miles from LAX, Vegas’ even closer to McCarran International Airport. Whoever gets the game can look forward to an influx of 35,000 tourists, based on recent stats. The City of Angels will have the bigger seating capacity but Sin City is already playing host to the Pac-12 men’s basketball championship, to be played at T-Mobile Arena. (Funny how sporting leagues are suddenly drawn to Las Vegas now that the Supreme Court has said sports betting is kosher.) Call it a standoff at this point and root for the Strip.

* As suspected, Luxor Capital Group is the new owner of Continue reading

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Quote of the Day

“With social elements and innovative side bets, blackjack has the potential to draw new players to the casino floor, as well as retain old ones. Starting with the people, from attentive cocktail servers to properly trained dealers, we want players to walk away feeling like winners—even after losing their last chip. Frequent-hitting side bets, tables that pay 3:2, and advantageous house rules should be what keeps these players coming back time and time again. Though the data might show that this isn’t the fastest way to make a profit, it’s the only way to ensure a happy, passionate base of loyal blackjack players.” — Nicole Schultz of UNLV‘s International Gaming Institute on how to sell blackjack to millennials.

Posted in Entertainment, Marketing | 1 Comment

Wynn: The settlement; Paddock explained, somewhat

We’re into Day Two of the Wynn Resorts settlement with the Nevada Gaming Control Board and some details are starting to make their way into the public discourse. Forbes enumerates the charges and they include:

    • “Employee 1 claimed that in 2005 she was sexually assaulted by Mr. Wynn and became pregnant with his child.” This led to the $7.5 million payoff that got Steve Wynn and Kim Sinatra bounced from Massachusetts.
    • “A Wynn Las Vegas cocktail waitress, Employee 2, claimed that she was pressured into sex with Mr. Wynn from 2005-2006.” Wynn execs Marc Schorr and Arte Nathan had knowledge of this — and are highly unlikely to ever work in gaming again.
    • A “cocktail waitress and flight  attendant claimed harassment by Mr. Wynn.”
    • “Employees 4, 5 and 6 detailed sexual harassment by Mr. Wynn in 2014.  Nevada Gaming noted that  ‘several executives knew’ about the  behavior …. too many to mention.”
    • A “flight attendant on Mr. Wynn’s private jet claimed sexual harassment by Mr. Wynn on flights.” Again, Sinatra knew.
    • “Employee 8  facilitated sexual relationships between cocktail servers at Wynn Las Vegas and Mr. Wynn … and certain guests at Wynn Las Vegas.” Nathan knew about this pimping. (Wynn Resorts is not contesting any of the NGCB’s findings.)
    • “In 2007, [General Counsel Kevin] Tourek received an email about a Wynn executive who ‘loves sleeping with cocktail servers.'” No follow-up.
    • Steve Wynn “did not receive proper annual training regarding the policies on sexual harassment.” Like that was gonna happen.
    • “Despite having policies that discouraged romantic relationships between executives and those who worked in their organization, it was clear that Mr. Wynn had ‘sexual relationships with Wynn Las Vegas employees/ and that his conduct was ‘unsuitable.'”

Continue reading

Posted in Architecture, Genting, Law enforcement, Mandalay Bay Massacre, Massachusetts, MGM Resorts International, Regulation, Steve Wynn, The Strip, Wynn Resorts | 2 Comments

Aguilera to hit the Strip; Arizona mulls sports betting

It’s a big week for announcements at Caesars Entertainment. While I admit I’d completely forgotten who Christina Aguilera is, she’s got enough pop-culture cachet to justify a Las Vegas residency, starting May 31 at the Zappos Theater (an improvement on whatever moniker it had before) at Planet Hollywood. In rolling out the news, Aguilera punched all the Xpected buttons: “The Xperience is going to be my most ambitious show yet. Getting to perform in this adult playground we call Las Vegas is inspiring me to bring forth all of my talents in a mind-blowing theatrical experience – song, dance, visuals and uninterrupted high energy. For years I have been collecting ideas and concepts that have yet to be implemented on my stages, and Las Vegas is the perfect opportunity for me to collectively showcase my artistry. I cannot wait to bring you into The Xperience.”

While Aguilera will have the disadvantage of being in Lady Gaga‘s and Gwen Stefani‘s shadows, her establishment of a Strip beachhead is further proof that Las Vegas has passed its era of being where Continue reading

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Caesars diversifies; Crazy rich Asians

In another pure, non-gaming play, Caesars Entertainment has disclosed plans to build a hotel at Scottsdale Fashion Square, in Arizona. “The 11-story glass structure, with 266 guest rooms, will be called Caesars Republic Scottsdale and will be the company’s first non-gaming hotel in the U.S.,” reports AZ Central. The hotel aspires to four-status and its actual operation, interestingly, will be farmed out to Aimbridge Hospitality. Caesars is primarily lending its land and — this is crucial — its Total Rewards membership program. So Caesars-friendly guests can rack up loyalty points without even visiting a casino. Since completion is not expected until 2021 it shouldn’t be a surprise that matters like cost, size of workforce and hiring dates are still up in the air at this point,

What can be disclosed is that there will be Continue reading

Posted in Arizona, Caesars Entertainment, Entertainment, Lawrence Ho, Marketing, Movies, Palms, Pansy Ho, Stanley Ho, Station Casinos, Technology, Tourism | Comments Off on Caesars diversifies; Crazy rich Asians

Quote of the Day

“The January 15, 2019 Department of Justice … 1961 Wire Act Memorandum is not the final word on Internet gambling, it is just a fierce reminder that they are in charge of the conversation. However, their actions will be the real statement. We are in a ‘wait and see’ scenario to find out exactly how they will enforce their position. How will they pursue the law on intrastate vs interstate and what qualifies as an illegal breach in our modern age of cloud computing? What level of priority will the United States Attorney’s office assign to hundreds of prosecutors across the nation? How aggressive will they be? How much support will The White House give?” — Global Sports Financial Exchange CEO Zack Ward on the Trump administration’s reversal of the Obama administration’s construal of the Wire Act.

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This just in: Wynn fined, settles with Resorts World

Although it seemed as though the Nevada Gaming Control Board had forgotten about its investigation of sexual harassment at Wynn Resorts, it was merely running silent, running deep. It came to the surface today with a settlement agreement whereby Wynn will pay an as-yet-undisclosed amount. “We look forward to appearing before the Nevada Gaming Commission to review the settlement and establish the final resolution of the investigation,” said a press release, meaning that Wynn could still try to haggle down the amount it will be fined. The Nevada record is $5.5 million. Whatever is agreed upon in the Silver State will probably serve as a reference point for the Massachusetts Gaming Commission when it levies its all-but-inevitable sanctions on the company. “Notably, the decision acknowledges that Continue reading

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Survey says: Las Vegas bad for NFL; Power struggle in Macao

Put me in the one-third of Americans surveyed who wouldn’t give up their annual bonus to see their team win the Super Bowl. That’s one of the findings of a WalletHub study that, incredibly (at least to me) ranks Las Vegas as the fourth-worst city for football fans — bad news for the Las Vegas Raiders if true. The metrics used, however, tend to involve college football. Sin City is 184th for performance in college football, 96th in minimum ticket cost, 210th in stadium capacity and — this is dire — 213th in fan engagement. The Malosos are going to have to get that last number up. No surprise, cities with NFL teams topped the list, with — this is a pleasant surprise — Pittsburgh leading all comers. Green Bay, Titletown USA no less, was only third, bested by Boston. At least Lambeau Field leads in accessibility. It also has the “most engaged” fans, Los Angeles the least. While Cleveland has the worst team, according to WalletHub, it has the most affordable tickets. The priciest college tickets are at Notre Dame, as you’d probably predict.

While we’re on the subject of sports, Continue reading

Posted in Arkansas, Caesars Entertainment, California, Entertainment, Indiana, Internet gambling, Japan, Las Vegas Raiders, Lawrence Ho, Macau, Massachusetts, Melco Resorts & Entertainment, MGM Resorts International, Mohegan Sun, New Jersey, Ohio, Pansy Ho, Pennsylvania, Racinos, Regulation, Rush Street Gaming, Scientific Games, Sociedade de Jogos de Macau, Sports, Sports betting, Technology, Tourism, Wall Street, Wisconsin | Comments Off on Survey says: Las Vegas bad for NFL; Power struggle in Macao