Don’t hold your breath if you’re waiting for Tilman Fertitta to break ground on what will probably be a Post Oak Hotel on the Las Vegas Strip. The mogul is keeping his powder dry, or as Truist Securities analyst Barry Jonas summarized him, “No firm start date has been set, and management is willing to wait for clarity on economic conditions.” That could be a long wait. Already Fertitta’s high-end-dining business is softening, though Tilman expects his Joe Sixpack customers to be most affected by any economic downturn. And if you were wondering whether Tilman would expend any of his considerable political capital on behalf of Texas casino legalization, the answer appears to be no. Fertitta kept mum on the subject, beyond saying that Texas tribal casinos wouldn’t hurt his Lake Charles business, which hardly comes as a shocking analysis.
As mentioned previously in our Comments section, Tilman is buying out the Hard Rock Lake Tahoe, with the intention of rebranding it as a Golden Nugget. So now we’ll get to see which brand is more potent. Alas, the purchase price is a secret but it’s certainly well above the $43 million that Fertitta spent to get into the Cripple Creek market. Whether Fertitta is ready for the whipsaws of the volatile Lake Tahoe market is another story. Regulatory approval still lies ahead but it’ll be a cinch, as it should be. Also, Tilman will be sitting in the catbird seat, having nabbed the casino closest–a stone’s throw–from the in-progress Tahoe South Events Center. That will put conventioneers on Fertitta’s doorstep.
We’re not sorry to see Paragon Gaming go … not after a Saturday-night special last weekend that saw one person fatally shot and two arrested. The Hard Rock looked like a convention of cops, as 100 officers from eight jurisdiction converged upon the casino. The soon-to-be-ex-Hard Rock was once the Sahara Tahoe, the starting point in the casino businesss for legendary operator William Bennett. That was what convinced Paragon boss Diana Bennett to acquire the place, back in the day. Whatever Tilman’s paying her to part with dad’s old stomping grounds will buy a lot of crying towels.
In another setback to Atlantic City‘s bread-and-butter customer, the day-tripper, New Jersey‘s oldest bus service is drastically curtailing servicce. According to our East Coast bureau, it “started as a stagecoach in 1870 and has seven commuter routes: 33, 66/66R/44, 99, 88, 32 and 100.” Said DeCamp, “It is with a heavy heart that we announce that DeCamp Bus Lines will be ceasing commuter services to and from New York City … DeCamp Bus Lines has struggled to recapture daily commuter passengers as work-from-home, telecommuting and flex schedules severely reduced daily commuting to New York City.” Monthly ridership is averaging 20% of pre-Covid levels … or less. Says our correspondent, “DeCamp Bus Lines will only offer charter and casino services as of April 7.”
Perhaps one of the reasons DeCamp is struggling is that “for the fifth consecutive year, New Jersey was the number-one state Americans chose to leave in 2022. The top reasons folks cited for leaving New Jersey were for retirement (32%) and being closer to family (also 32%). Getting a new job was also a key motivator for 20%.” Moreover, says our reporter, “a poll by Monmouth University last year found that a record 59% of New Jerseyans would like to move “at some point,” which is an increase from previous polls. This could be due to the Garden State’s high property tax burden, which is only rising higher, with the high cost of living pushing many to seek shelter elsewhere.”
Jottings: Hard Rock International has been green-lit by the Clark County Commission to build a guitar-shaped hotel in front of the historic resort. When completed, the tower will reach 660 feet into the air … The Philippines casino regulatory body, Pagcor, has long been a walking, talking conflict of interest, owning scores of casinos as well as overseeing the industry. Years of hot air about selling those casinos may finally yield action, if CEO Alejandro Tengco is talking straight about unloading the 42 gambling halls spread across the archipelago … Global Gaming Business is optimistic that gambling could expand in as many as six states this year. Deutsche Bank analyst Carlo Santarelli surveyed largely the same legislative landscape and took a far gloomier view … As in the U.S., “free bet” promotions are a source of controversy in the United Kingdom, where some in the Tory government look to ban them. However, the Betting & Gaming Council is pushing back, saying no more free bets could drive customers to the black market … Atlantic County is subsidizing residents to learn to become casino dealers. The monies are derived from the Obama-era Workforce Innovation & Opportunities Act. The goal is to deploy newly minted dealers by Memorial Day … Embattled Star Entertainment has a new chairman, banker David Foster. He follows the short-tenured Ben Heap, who lasted a mere 10 months in the chair …
Red Rock Resort is still aiming for high rollers, especially with its new Rouge Room. Beneath a canopy of chandeliers, guests can order from a menu that features such gustatory pleasures as “French-driven cuisine and includes seafood platters and champagne and caviar service” … Bally’s Corp. is reinvesting into Bally’s Quad Cities. The Illinois casino will receive a $34 million infusion in order to raise wages, renovate all 205 hotel rooms and cannibalize the steak house into a sports book … Carlo Santarelli hasn’t been what you’d call a big fan of DraftKings but he’s liking management’s new, profit-oriented course. He generally finds the reorientation “fruitful,” although he queries whether tighter holds “beat [the] customer for more, or simply beat them faster, and potentially hamper the entertainment experience” … If you’ve exhausted all the familiar Las Vegas tourist haunts, head on over to Decatur Avenue to experience the throwback thrill of Slot Car City, where tiny cars zip around miniature race tracks. Ten bucks buys you half an hour of track time (21 mph), which has to be one of the best bargains in Sin City … Guess who’s surfaced at the center of the First Republic Bank crisis? None other than Colony Capital screwup and sexist dinosaur Tom Barrack, the guy who vaporized hundreds of millions of investor dollars in the Station Casinos bankruptcy. You can’t keep a bad man down.
Lake Tahoe loses a great brand! Too bad. The casino has a great vibe and the rooms are not bad, but the property lacks amenities, mainly a terrible pool scene which Tilman should address.
If the folks at CZR were smart, they would capitalize on the HR brand removal and put some TLC into Harveys. Harveys was the defacto Hard Rock of the lake (fun vibe) before HR opened (it even had a HR cafe which featured nightly entertainment). CZR has kept the rooms updated there, but the casino floor and amenities are pretty disgusting. Time to revive it!
The Hard Rock never established itself as a premier property in the Lake Tahoe market. Top management was constantly changing and the building, which originally opened in 1965 as the Sahara Tahoe, has been severely neglected. Good luck to Tillman. I hope he succeeds.