{"id":21949,"date":"2018-06-25T07:36:58","date_gmt":"2018-06-25T15:36:58","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=21949"},"modified":"2018-06-25T08:10:55","modified_gmt":"2018-06-25T16:10:55","slug":"d-day-for-ocean-resort-near-mgms-tax-bonanza","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/d-day-for-ocean-resort-near-mgms-tax-bonanza\/","title":{"rendered":"D-Day for Ocean Resort near; MGM’s tax bonanza"},"content":{"rendered":"

Bruce Deifik<\/strong> really is a gambler: He bought Revel<\/strong> sight unseen<\/a>, lead investor in the $200 million purchase. If Glenn Straub<\/strong>‘s bizarre interregnum as owner was a lesson in how not to behave in Atlantic \"\"City<\/strong>, Deifik has been a model citizen.\u00a0\u201cI\u2019m either the world\u2019s biggest moron or I\u2019m reasonably intelligent,\u201d Deifik told Bloomberg Businessweek<\/em>.\u00a0\u201cI\u2019m not working with funds that have unlimited deep pockets. This is our family. We take this very, very seriously.\u201d If Revel does a third swan dive, Deifik’s liquidity could be wiped out, as could his real estate holdings, given the investment’s heavily collateralized nature. As Fitch Ratings<\/strong> analyst Alex Bumazhny<\/strong> says of Deifik’s Ocean Resort<\/strong>,\u00a0\u201cIt\u2019s going to be swimming up against the current when it opens.\u201d<\/p>\n

Heck, Deifik’s financial projections<\/a>, which show Ocean Resort surging past Tropicana Atlantic City<\/strong> into second place, may have some questioning his sanity. $292 million in gaming revenue in Year One is mighty big talk.\u00a0\u201cWe believe our numbers are very achievable,\u201d said Alan Greenstein<\/strong>, who (ominously) used to crunch numbers for Revel. And Straub will be making money off Ocean Resort, if it lasts into 2021, whereupon he collects $1.50 per car parked at the megaresort. Nice work if you can get it.<\/p>\n

Unlike Straub and previous CEO Kevin DeSanctis<\/strong>, Deifik harbors no illusions that Ocean Resort will be a high-roller hangout. Poker is out, billiards are in. Affordable dining has arrived. Comps won’t be sweated<\/a>. E-sports is coming. Sports betting will get there eventually, once William Hill<\/strong> builds a $6 million sport book. Even so, Deifik seems to be in agreement with Bumazhny, telling Bloomberg<\/em>,\u00a0\u201cUnless you\u2019re really 100 percent dedicated, 24 hours a day, a property like this\u2014as beautiful as she is\u2014it will kill you.\u00a0It will take you down.\u201d Let’s hope not.<\/p>\n

* Margaritaville Bossier City<\/strong> boss Paul Alanis<\/strong> put the best possible face on potentially losing his job now that the casino has been sold: \u201cI am pleased to have entered into this agreement with Penn \"\"National Gaming<\/strong> and VICI Properties<\/strong>. I am confident that Penn National Gaming will continue the quality operations that have characterized Margaritaville Resort Casino these past five years and will provide new opportunities for our crew members as well as an exciting gaming and entertainment experience for our valued customers.\u201d\u00a0A slew of new amenities<\/a> doubtless made Margaritaville more attractive to Penn and Vici alike but the bottom line is foot traffic: Margaritaville is the most popular casino in the market, pulling in\u00a0177,252 last month, compared to revenue leader Horseshoe Bossier<\/strong>‘s 117,912.<\/p>\n

* In a sinister move that threatens tribal gaming, Rep. Rob Bishop<\/strong> (R) has introduced the Tribal Recognition Act<\/strong>, which would take away the Bureau of Indian Affairs<\/strong>‘ tribal-recognition powers and ability to take land into trust. This is playing political games with tribal sovereignty and should be opposed.<\/p>\n

* As though Nevada<\/strong> casinos weren’t already paying the lowest taxes in the country, they just got cheaper, courtesy of Elon Musk<\/strong>. He’s selling Tesla’s state tax credits to companies like MGM Resorts International<\/strong>. Musk told investors they could expect a profitable year entirely on the strength of tax-credit sales, with $131 million on the books already<\/a>.\u00a0 A Tesla<\/strong> spokesman downplayed the ledger-demain, saying it\u00a0\u201cwill not have even a close to material impact on our profitability,\u201d of which Tesla has seen little. Casinos are happy campers but the State of Nevada, seeing its budget surplus wither away, does not share in the joy.<\/p>\n

State Treasurer Dan Schwartz<\/strong> told a reporter this way \u201cmoney the citizens have to make up for if they want to build roads, hospitals, and schools …\u00a0I am just kind of opposed to these kind of incentives. Especially if they are selling credits to casinos. That\u2019s real money.\u201d While the jury remains out on Tesla, selling tax credits to vastly profitable casinos is only making the rich richer.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bruce Deifik really is a gambler: He bought Revel sight unseen, lead investor in the $200 million purchase. If Glenn Straub‘s bizarre interregnum as owner was a lesson in how not to behave in Atlantic City, Deifik has been a … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[23,239,220,185,7,84,11,207,69,33,157,74,31,20,21,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/21949"}],"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=21949"}],"version-history":[{"count":3,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/21949\/revisions"}],"predecessor-version":[{"id":21957,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/21949\/revisions\/21957"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=21949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=21949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=21949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}