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 ignorance of any pillow talk in Bridgeport, nor could anything be done during the current Lege—though there’s already talk of a special session. The deal on the table is much smaller than MGM’s pitch: a $350 million resort casino-hotel, plus exclusive rights to sports betting and Internet gambling in the Nutmeg State. Said state Sen. Cathy Osten (D), “The tribal nations and the mayor of Bridgeport have to come to an agreement that would be beneficial to the city and the businesses of the tribes. Many legislators are waiting for that to happen.” MGM, which insists on open bidding for a third—let alone a fourth—Connecticut casino, is expected to sue in any event. Lamont has reversed predecessor Dannel Maloney‘s preference for MGM-in-Bridgeport to a pro-tribal stance. The casino giant has also had difficulty gaining traction in the courts but no one expects it to wave the white flag anytime soon.

* A Crown Resorts $1.5 billion megaresort is back under regulatory scrutiny after Crown announced it was selling a 20% stake to Melco Resorts & Entertainment. The concern is over what extent Melco CEO Lawrence Ho is tainted by father Stanley Ho‘s mob ties. Crown had received approval for the 75-story project on the grounds that it would have no truck with the elder Ho. A New South Wales regulator told Reuters his agency would “now review all relevant issues when considering the required approvals and probity checks.” The announcement sparked fear of a drop-off in Crown’s stock price. “This would also block out a bid coming back from Wynn [Resorts] probably,” said fund manager Angus Gluskie. A discount in the Crown stock price would be good news for the younger Ho, as it would allow him to cheaply increase his stake. He got Crown stock for $9.08, whereas Wynn would have paid $10.31/share, a substantial premium.

* Loss-leading, non-gambling attractions are the mandate for casinos in Macao that want to have their license renewed. But some will be better at it than others. Union Gaming analyst Grant Govertsen taps Sands China and Galaxy Entertainment as the frontrunners, while Sociedade de Jogos de Macau is described as a probable loser due to lack of efficiency (SJM will probably go the way of the dodo unless City Hall props it up). Galaxy’s movie theaters and wave pool are identified by Govertsen as powerful draws. Ditto Sands’ Italian theming at Venetian Macao, the world’s largest casino. Sands’ non-gaming revenue last year stood at $1.8 billion, compared to Galaxy’s $675 million and a measly $93 million for SJM. The local government wants to see more conventions (Sands’ meat and drink), art and entertainment.

The civic mandate is to get non-gaming income up from its 2%-20% range to 40% or more, following the Las Vegas model. Meanwhile, operators’ 20% ROI is becoming a thing of the past and will be more so if the government is given its druthers. Already Tryst at Wynn Macau has been converted into VIP baccarat space and Cirque du Soleil was a flop with the Macanese public. As Lawrence Ho concluded to Reuters, “Non-gaming is hard in Macao. That is the simple truth of it and you really have to try very hard.” And get ready to lose a lot of money.

* E-sports is becoming as codified as a major-league franchise, with official leagues putting down roots in permanent stadiums, including Johnny Carson‘s former beautiful downtown Burbank studio. One casino-rich city that is becoming home to an e-sports league is Philadelphia, where the action will have a $50 million facility built for it by Comcast. Given the casino industry’s desire to get in on the ground floor of e-sports, it would behoove it to follow Comcast’s lead. Heck, even colleges and universities are forming e-sports teams. How long before Las Vegas casinos start taking bets on them?