Quo vadis, Steve?; Dan Gilbert’s new twist

Gaming Industry Daily Report Editor Alan Woinski has some interesting speculations about Steve Wynn‘s future and his big stock cash-out. “He will need the money considering he never received a golden parachute when he stepped down. He could have a lot of legal fees and, of course, there always is the chance that Steve Wynn could buy or build another casino, which most likely would be outside the U.S. if he were to do it.” Hmmmm. Could Wynn ‘go rogue’ in Macao or Japan? (He’s permanently barred from the Philippines.) In the former instance, a seventh concession would have to be issued. In the latter, it’s still anyone’s ballgame, although a corruption scandal involving the wife of Prime Minister Shinzo Abe — and the unpopularity of casinos among the electorate — casts a shadow on their chances there.

JP Morgan analyst Joseph Greff thinks Elaine Wynn is poised for an “eventual” sale of her shares, although with 9.25% of the company in her purse, one wonders why she’d liquidate such a powerful position. As for the recent sale of Wynn Resorts stock to Galaxy Entertainment, Greff sees it “as potentially opening the door to Macau consolidation with a local hometown team that is capable of getting a transaction done.” And what kind of transaction might that be? Macao is Wynn’s bread and butter. Selling off the Macanese assets would be a terrible decision, Merging with Galaxy … not so much.

However, JP Morgan analysts DS Kim and Sean Zhuang wrote, “The fact that Galaxy didn’t want to cross the 5 percent line indicates this is more of a strategic investment and not an attempt to take over or control the company. We don’t expect Galaxy to further increase their stake for the foreseeable future.” Wynn Resorts may be buying protection with the Galaxy sale. “Now that Wynn has backing from Galaxy, arguably the most prominent local operator that has a great relationship with governments, one could argue that the risk of license renew should be reduced,” wrote Kim and Zhuang. And if it is the beginning of a takeover, Wynncore and Wynn Boston Harbor would be up for grabs, says Union Gaming Group analyst Grant Govertson, who writes, “we think Galaxy is only interested in Macau.”

* Greed in Las Vegas reaches new levels. Las Vegas North Premium Outlets has begun to charge $5 to park. Seriously? Charging people for the privilege of shopping? (Locals are exempt for the moment, but we know how that goes.) Management said the new policy “falls in line with what many local businesses have already done” and will help ease congestion and decrease the time visitors wait for a parking spot.” By (it is implied) shuffling employee park off to a remove part of the garage), consumers will have access to spaces closer the entrance. That’s unlikely to take the sting off the five-buck impost.

I’ll give this to Dan Gilbert: He’s not ossified. The newfangled table-games pit at Jack Cleveland is a case in point. Trying to cope with the distractions of a DJ, instant messaging and simultaneous blackjack and roulette would be more than I can assimilate — even the go-go dancers at Caesars Palace were a bit much — but Millennials are a different breed and are likely to take this party pit like ducks to water. Already the new breed of table pit has been installed at Jack Greektown and Jack Cincinnati. Who will be the copycat who first brings it to Las Vegas? (We’re looking at you, Derek Stevens.)

* Here’s an idea casinos could really use: Patriot One Technologies‘ PatScan, which performs a non-intrusive, radar-based search for weapons. It can conduct a full-body scan and was already field testing at Westgate Las Vegas at the time of the Mandalay Bay Massacre. The technology can be embedded in walls or ceilings, eliminating the prospect of customers balking at metal detectors. “The material composition on the shape of the weapon will give a unique resonant signature,” says a Patriot One exec. It directly alerts security teams to the presence of weapons and hopefully will be ready for deployment by year’s end. We think the casino industry should invest heavily in PatScan, rather than continue to run the risk of another October 1.

* In Japan, the Komeito and Liberal Democratic parties remain considerably at odds over casino implementation. Komeito is holding fast for no more than two or three megaresorts, with a daily entry fee of $75. LDP is being more, uh, liberal. It wants four or five integrated resorts, with a daily pass that costs no more than $19. Given Komeito’s ability to be bend Shinzo Abe to its will, we think the more conservative approach will prevail.