{"id":21504,"date":"2018-04-11T08:37:34","date_gmt":"2018-04-11T16:37:34","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=21504"},"modified":"2018-12-06T09:09:18","modified_gmt":"2018-12-06T17:09:18","slug":"study-zings-mgm-galaxy-resort-vetoed","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/study-zings-mgm-galaxy-resort-vetoed\/","title":{"rendered":"Study zings MGM; Galaxy resort vetoed"},"content":{"rendered":"

Allowing a fourth casino into Connecticut<\/strong> — and thereby abrogating its gaming compacts — could be extremely costly for the Nutmeg State. That’s the conclusion of a new study<\/a> by casino pundit Clyde Barrow<\/strong>. He writes that the new casino would have to gross $1.1 billion a year to\u00a0 \"\"make up enough to match the revenue contribution from Foxwoods Resort Casino<\/strong> and Mohegan Sun<\/strong>. Despite MGM Resorts Internationa<\/strong>l CEO Jim Murren<\/strong>‘s claims,\u00a0\u201cNot a single commercial casino in the United States<\/strong> currently generates that level of gross gaming revenue,\u201d Barrow states. At a steep 25% tax rate, the best MGM could do for the state would be $180 million, a far cry from the $271 million that Foxwoods and Mohegan Sun shared with the state last year. Also, Barrow notes, competition from Connecticut has sprung up on all sides — Massachusetts<\/strong>, Rhode Island<\/strong>, New York State<\/strong> — with more on the way.<\/p>\n

Even a $90 million shortfall is an optimistic scenario, Barrow adds, pointing out that legislation currently before the Connecticut Lege would require no more than a $500 million capital investment. MGM has already scaled back its promised budget from $1.1 billion to $675 million,. By comparison, MGM lavished $1.4 billion on MGM National Harbor<\/strong>, \"\"which isn’t tracking to make its projected $715 million by Year Three. (It grossed $338.5 million in its first year.)\u00a0\u201cMGM\u2019s National Harbor provides a window into the future of what is likely to happen should the General Assembly<\/strong> pass HB 5305<\/strong> (the competitive-bidding bill) and the state award a license to MGM to build a commercial casino in Bridgeport<\/strong>, Connecticut,\u201d Barrow writes.<\/p>\n

New York State could also checkmate MGM\u00a0“by authorizing an even larger mega-casino or converting an existing racetrack gaming facility in Yonkers<\/strong> or Queens<\/strong> into a full-scale resort with table games taxed at only 10 percent and a speed-to-market advantage over a proposed Bridgeport \"\"casino …\u00a0The anticipated traffic from New York City<\/strong> will never materialize for a Bridgeport casino because New York can easily and quickly pre-empt a new competitive threat from Connecticut by building an even more lavish casino that is more convenient to New York City customers.”<\/p>\n

Worse still, if MGM-friendly legislation is passed, slot monies that would normally go to the state would be placed in escrow<\/a> instead while the matter is litigated. \u201cShould the state lose that litigation it could result in an upfront permanent loss of more than $1 billion in revenue over a four year period ($270.7 X 4 years) while potential casino sites are identified, bids and proposals are submitted to the state, the state reviews proposals and issues a license, and a casino is eventually constructed.\u201d Does Connecticut really want to endure so much self-inflicted fiscal pain?<\/p>\n

*\u00a0Galaxy Entertainment<\/strong>‘s carefully crafted plan for a $500 million resort in the Philippines<\/strong> seaside town of Boracay<\/strong> was abruptly vetoed this week by Filipino despot Rodrigo Duterte<\/strong>.\u00a0\u201cI don’t have \"\"plans there for casinos. There are enough, there is too much \u2013 casino here, casino there,” said Duterte, giving a potential preview of policies to come.\u00a0\u201cConsider Boracay a land reform area. I will give it to the farmers first. I will issue a proclamation that all of the land will be agricultural.\u00a0The law says it is forest, agricultural. Why would I deviate from that?\u201d Official regulatory body Pagcor<\/strong> now looks foolish, having approved the Galaxy project only to have Dutere cut Pagcor off at the knees. Pollution concerns had already prompted Duterte to bar tourists from Baracay for six months, so regulators perhaps should have had some premonition this project wouldn’t fly.<\/p>\n

* Indiana<\/strong> casinos were up 7% last month, buoyed by a stellar performance from Ameristar East Chicago<\/strong>, among other factors. The latter was up 24.5% to $23 million. Horseshoe Hammond<\/strong> remains \"\"the 800-lb. gorilla, though, grabbing $40 million (+1%). Boyd Gaming<\/strong>‘s Blue Chip<\/strong> was flat at $15 million, while the two Majestic Star<\/strong> riverboats went on opposite courses: Majestic Star I<\/strong> was 4% down, at $9 million, while Majestic Star II<\/strong> gained 2.5%, for $6 million. French Lick Casino<\/strong> had very strong March as well, vaulting 31% to $9 million. Centaur Gaming<\/strong> racinos had solid months. Indiana Downs<\/strong> rose 7% to $24.5 million while Hoosier Park<\/strong> grossed $18.5 million, up 4%.<\/p>\n

Along the Ohio River<\/strong>, business was good for everybody except Horseshoe Southern Indiana<\/strong>, which ceded 6% to gross $22 million. Tropicana Evansville<\/strong> continues to be the star performer of the area, \"\"up 35% (!!) to $16 million. Remember, this is a casino whose business was unimpaired while construction of the land-based facility took place. Rising Sun<\/strong> rose 31% to $5 million and Belterra<\/strong> gained 8% to $11 million. Hollywood Lawrenceburg<\/strong>\u00a0was solid, up 2% to $16.5 million.<\/p>\n

* Bigger Las Vegas<\/strong> casino companies could take a cue from Affinity Gaming<\/strong>, which has incepted an aggressive recycling program at Silver Sevens<\/strong>. It’s discovered that waste reduction is profitable<\/a>, in addition to being enviro-friendly. The project is the brainchild of CEO Michael Silberling and has resulted in 111 of 575 tons of waste being repurposed, saving $25K a year. Local garbage company RenuOil<\/strong> is Affinity’s partner in the go-green effort.\u00a0\u201cMany of those items we sell to go against the cost of the employees to do the recycling for us,\u201d said Affinity exec Dick Moskal of the project that ranges from the obvious (glass) to the less-expected (cooking oil). Adds the Las Vegas Sun<\/em>, “having less pulls per week on the trash compactor and less garbage pickup also saves money.”<\/p>\n

Affinity’s work at Silver Sevens will pale by comparison when the recycling program is extended to its Primm<\/strong> properties. The company owns three grind joints in the border town, so one can only imagine the volume of garbage produced — and the potential recycling bonanza.<\/p>\n","protected":false},"excerpt":{"rendered":"

Allowing a fourth casino into Connecticut — and thereby abrogating its gaming compacts — could be extremely costly for the Nutmeg State. That’s the conclusion of a new study by casino pundit Clyde Barrow. He writes that the new casino … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":20214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[173,40,60,229,14,117,166,198,201,7,191,72,112,11,167,101,69,192,30,33,31,20,21],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/21504"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=21504"}],"version-history":[{"count":4,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/21504\/revisions"}],"predecessor-version":[{"id":23040,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/21504\/revisions\/23040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media\/20214"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=21504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=21504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=21504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}