{"id":24187,"date":"2019-05-20T07:56:30","date_gmt":"2019-05-20T15:56:30","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=24187"},"modified":"2019-05-20T07:56:30","modified_gmt":"2019-05-20T15:56:30","slug":"maddoxs-mess-big-gaming-gets-image-conscious","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/maddoxs-mess-big-gaming-gets-image-conscious\/","title":{"rendered":"Maddox’s mess; Big Gaming gets image-conscious"},"content":{"rendered":"

\u201cBoston<\/strong> is not up for sale. I like that market. I found the land. I pursued that deal. I entered the agreement with the host community five years ago. I liked that market then. I like that market today.\u201d So said Wynn Resorts<\/strong> CEO Matt \"\"Maddox<\/strong> slightly more than one year ago. What a difference 365 days make. Now, facing a $500,000 fine and mandatory personal instruction in becoming a better CEO, Maddox is apparently only too happy to be shot of Encore Boston Harbor<\/strong>. One of the sticking points of the Massachusetts Gaming Commission<\/strong>‘s proposed settlement with Wynn Resorts is what Global Gaming Business<\/em> describes as<\/a> “an appointed public monitor who would have almost carte blanche over operations of the property to ensure that the corporate changes instituted in the wake of the Steve Wynn<\/strong> scandal are carried out.” As casino expert Clyde Barrow<\/strong> told the Boston Globe<\/em>, “probably Wynn Resorts wants to wash its hands of Massachusetts<\/strong> and move on.\u201d<\/p>\n

Also, there’s the little matter of the $35 million penalty that Maddox\u00a0is manifestly unwilling to pay, saying, \u201cHowever, we are still reviewing the decision as it relates to some of the secondary and tertiary conditions imposed by the commission. We do not believe if we choose to appeal that that will impact our ability to open the project at the end of June.” Worse news, perhaps, for any potential buyer is that Maddox\u2014in a moment of revisionist history\u2014says the property will only ramp up slowly and not hit its stride for a year to come. Who’s going to shell out top dollar for a casino-resort that is expected to underperform for its first year?<\/p>\n

For the moment the MGC is confronted with a $2.6 billion trophy property that’s been essentially emblazoned with “For Sale” in giant, red letters. \"\"Unfortunately for Wynn, MGM Resorts International<\/strong> may be prohibited by statute from riding to its rescue (ditto Penn National Gaming<\/strong>) while thwarted developer Mohegan Sun<\/strong> now says it’s not interested in taking over the property. MGM has its own problems in Springfield<\/strong> (perhaps one reason it is making sheep’s eyes at Boston), where revenue fell 15% from March to April, as Mayor Domenic J. Sarno<\/strong> wrings his hands helplessly hoping that MGM doesn’t leave his city in the lurch. Also, Wynn Resorts has to receive\u00a0a\u00a0mandatory release from the City of Everett to transfer its right of ownership to Encore Boston Harbor.<\/p>\n

Through a spokesman, Everett<\/strong> Mayor Carlo DeMaria said he is “not amused<\/a>” by the footsie being played between MGM and Wynn Resorts, while\u2014in a sudden fit of magnanimity\u2014Boston Mayor Martin Walsh<\/strong> (D) is saying the \"\"MGC’s casino-license award to Wynn Resorts cannot be second-guessed. That said, he’s against rebidding the property, begging the question of how the mess was to be solved:\u00a0\u201cIn fairness, you have a $2 billion building built in Everett, I don\u2019t think you can do that, that wouldn\u2019t be fair to the people of Everett and I don\u2019t think it would be fair to this region. I wouldn\u2019t want to start the process all over again, absolutely not.\u201d<\/p>\n

Everett City Councilor Mike McGlaughlin<\/strong> minced fewer words<\/a>: \u201cNinety percent of residents voted in favor of a host community agreement with Wynn Resorts, a five-star resort destination, and not for a three-star resort, which is MGM.\u201d Ouch! As for restless MGM, Springfield City Council President Justin \"\"Hurst<\/strong> remarked that it is\u00a0\u201cdifficult and disheartening to hear considering it is somebody that\u2019s been such a good partner over the last few years has the potential to leave this city, especially one we felt so much optimism by their presence here.\u201d But Everett’s DeMaria may have the final say. As spokesman George Regan<\/strong> said,\u00a0\u201cThe mayor had the foresight that something like this could occur and to protect the city, he put in Section 10 that gives the mayor ultimate veto …\u00a0He\u2019s not going to allow the city of Everett to be taken for granted.\u201d Nor should he.<\/p>\n

* While the Lucky Dragon<\/strong> doesn’t have a new name yet, owner Don Ahern<\/strong> hopes to have it reopened as a hotel in the next 60 days. He also told the Las Vegas Review-Journal<\/em> that the repurposing of the casino floor into a convention area would be probably be completed by Thanksgiving. If you’re looking for a metaphor for conventioneers’ ascendancy over gamblers in Sin City, look no farther.<\/p>\n

* Gaming companies are supposedly fretful over the question, “Will Las Vegas become the next Amsterdam?” Worse things also could happen. Also, Big Gaming seems rather hypocritical worrying about cannabis-connected debauchery<\/a> after years of promoting irresponsible behavior with slogans like \"\"“What happens here, stays here” and “Shut up and play.” If the Nevada Gaming Commission were to allow them to dabble in cannabis, the major gambling companies would jump in with both feet. Clark County Commissioner Tick Segerblom (left<\/em>) calls them on it:\u00a0“They\u2019re worried the longer this goes outside hotels, the more established they\u2019ll get. As a business person, I would be concerned too.<\/p>\n

Added UNLV International Gaming Institute<\/strong>‘s Bo Bernhard<\/strong>, \u201cIt\u2019s a fascinating chapter that will be interesting to see whether they’re\u00a0something that draws folks \u2013 and, of course, there are concerns it will draw folks away from the resorts.” The Nevada Resort Association<\/strong>‘s Virginia Valentine<\/strong> insists otherwise.\u00a0\u201cAs long as it\u2019s federally illegal, we can\u2019t have it on the property,” she told a reporter.\u00a0\u201cWe\u2019re trying to create that separation.\u201d Bernhard cuts to the chase:\u00a0\u201cThe nightclub is a place where margins based on massive mark-ups of things like bottles of alcohol are generating huge amounts of money to the bottom line. Something that obviously threatens that revenue stream is something that is going to be a concern.” Should we say the casino industry is worried about profits going up in smoke?<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cBoston is not up for sale. I like that market. I found the land. I pursued that deal. I entered the agreement with the host community five years ago. I liked that market then. I like that market today.\u201d So … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":10702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[206,224,112,245,207,69,25,232,32,9,233],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24187"}],"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=24187"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24187\/revisions"}],"predecessor-version":[{"id":24190,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/24187\/revisions\/24190"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media\/10702"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=24187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=24187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=24187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}