{"id":21788,"date":"2018-05-30T07:54:32","date_gmt":"2018-05-30T15:54:32","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=21788"},"modified":"2018-05-30T07:54:32","modified_gmt":"2018-05-30T15:54:32","slug":"las-vegas-thrives-palms-ad-backfires","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/las-vegas-thrives-palms-ad-backfires\/","title":{"rendered":"Las Vegas thrives; Palms ad backfires"},"content":{"rendered":"

Yesterday, we spotlit the Debbie Downer view of Las Vegas<\/strong> of one online columnist. And while a lengthy slide in visitation numbers remains a concern, dark and anecdotal snapshots of Sin City are \"\"contradicted by the numbers. The latter are across-the-board better, in cases significantly so, than a year ago. (To be honest, these numbers also reflect Macao<\/strong>‘s recovery, particularly in the case of Las Vegas Sands<\/strong>.) Richard Velottta<\/strong> has a lengthy laundry list<\/a> of the reasons why Vegas companies are doing better. As Wynn Resorts<\/strong> CEO Matt Maddox<\/strong> told investors,\u00a0\u201cThe future is better than the past, no matter what the media likes to say.\u201d<\/p>\n

Companies not doing better are few but Boyd Gaming<\/strong> is one of them. It blames I-15<\/strong> construction for poorer business in Downtown and bad weather for weakness at its regional casinos in the first quarter. Station Casinos<\/strong> is coming off a $620 million revamp of the Palms<\/strong> but doesn’t expect it to hit its stride until year’s end. As for casino companies with an outlying presence, Union Gaming Group<\/strong>‘s John DeCree<\/strong> offers some comfort:\u00a0\u201cIn our view, the regional consumer is very healthy, and \"\"we expect better trends are ahead as winter concludes.\u00a0The first quarter is always choppy as the unfavorable weather moves around, ultimately impacting one or two markets; this year for Boyd, it was the Midwest, which was also impacted by a new competitor\u201d in the form of Four Winds<\/strong>, in Indiana<\/strong>. Still, there’s no denying that two of the top three casinos (Sands, MGM) are heavily reliant upon good times in Macao. As for the third, Caesars Entertainment<\/strong>, we haven’t a quick theory but it definitely has a not-so-secret weapon in the form of Total Rewards<\/strong>.<\/p>\n

Meanwhile, Eldorado Resorts<\/strong> doesn’t have a Vegas presence, but it’s hovering on the edges<\/a> with the impending acquisition of Tropicana Laughlin<\/strong>. Eldorado’s tale is the feel-good story of a family company and a home-grown casino enterprise that grew from one property (the titular Eldorado in Reno<\/strong>) to a big-leaguer with 27 casinos in 12 states, \"\"assuming that all regulatory approvals go through — and there’s no reason to think they won’t. “Las Vegas is a great market, and maybe someday we\u2019ll have the opportunity to have a casino here, but nothing\u2019s eminent [sic<\/em>],\u201d says COO Anthony Carano<\/strong>, who adds that acquisitions aren’t geographically planned but depends “whether we can provide a great return to our shareholders, and it kind of falls where it may on a map.” Maybe that lack of geographic strategy explains the buyer’s remorse Eldorado experienced in Erie<\/strong> and Vicksburg<\/strong>. Still, Eldorado’s runaway growth has to be one of the headline stories of 2018.<\/p>\n

As for Station, we were wondering if its “From Dust to Gold” ad campaign for the Palms would stick in any craws and sure enough it did<\/a>. With the Mandalay Bay Massacre fresh in his mind,\u00a0Cornell University School of Hotel Administration<\/strong>‘s Dr.\u00a0Chekitan Dev<\/strong> confesses to a “mixed feeling … It appears to be about revitalizing the brand. On the one hand, glorifying violence and destroying property to make a point seems gratuitous at best and irresponsible and crass at worst.\u201d\u00a0Boston University School of Hospitality Administration<\/strong> professor\u00a0Makarand Mody<\/strong> agrees: \u201cI think some of the images they used in the video were a little insensitive\u00a0… from the perspective of particularly what happened in Las Vegas last year. It could have been more subtly executed.” Well, the Fertitta Brothers<\/strong> were never known for subtlety.<\/p>\n