{"id":26130,"date":"2020-02-17T11:39:10","date_gmt":"2020-02-17T19:39:10","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=26130"},"modified":"2020-10-16T07:09:11","modified_gmt":"2020-10-16T15:09:11","slug":"encore-gets-real-atlantic-city-on-impressive-streak","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/encore-gets-real-atlantic-city-on-impressive-streak\/","title":{"rendered":"Encore gets real; Atlantic City on impressive streak"},"content":{"rendered":"

According to the Boston Globe<\/em>, a “sense of reality<\/a>” in sinking in at Encore Boston Harbor<\/strong> that it has to appeal to somebody besides high-income demographics. “This shift was evident recently when a bright-red taco \"\"truck appeared on the gambling floor amid the slot machines and table games.” You could fill up on nachos for $7\/plate or you could eat in one of \u00a0the restaurants and leave as much as several hundred dollars (money that might want to spend wagering) behind. Wynn Resorts<\/strong>‘ miscalculation of Beantown is not the first time a Steve Wynn<\/strong> casino has missed its niche: There was a steep learning curve at Beau Rivage<\/strong> when it opened in 1999.<\/p>\n

Encore President Brian Gulbrants<\/strong> spun the dining shift as\u00a0\u201cquality at the right price point,\u201d although seven bucks for some nachos still seems a mite steep.\u00a0\u201cWe don\u2019t ever want to alienate a segment of the business,” Gullbrants told the Globe<\/em>.\u00a0\u201cWe want customers to be able to \"\"come in here whether they have a dime, 10 bucks, or 10,000 bucks, and feel like a million bucks.\u201d That’s a laudable change of priorities from the Steve Wynn era, when high-value customers were the only ones for whom Wynn Resorts rolled out the welcome mat. Gulbrants has also made some n0-brainer changes: No more parking fees; a loyalty program for slot players; lowering of table-game minimums from $50 (!) to $15. Rare Steakhouse<\/strong> has curbed its prices and cost-effective dining options are promised.<\/p>\n

\u201cYou have every segment of the business in those markets as well,\u201d Gulbrants said of Wynn Resorts’ other footholds. The question is whether the company tailors its approach to each, as it’s doing now in Boston<\/strong>.\u00a0\u201cJust because they\u2019re synonymous with luxury or higher-end doesn\u2019t \"\"mean they can\u2019t be successful outside of a market like Vegas and Macao<\/strong>,\u201d remarked Fitch Ratings analyst Colin Mansfield<\/strong>. Encore finds itself stuck in an awkward position where it’s doing well (especially in market share) but not as well as was expected. Part of its Beantown evolution will have to do with making the realization that, while customers go to Wynn-branded casinos in Las Vegas<\/strong> as a destination and budget accordingly, in Boston it’s just one option in daily life. People are unlikely to build a Bostonian vacation around gambling at Encore, not when so much convenience gambling is available close to home.<\/p>\n

To its credit, Encore isn’t sweating comps (one gambler has been comped to all 15 restaurants) and it will be ready for sports betting\u2014if Massachusetts<\/strong> ever gets off the dime\u2014at its sports bar. Not that high rollers will be neglected: There soon will be a lounge just for them.\u00a0\u201cThis was never going to be a property that was going to cater solely to VIPs,\u201d says Mansfield, although we’re not sure the Wynn Resorts honchos thought that at first. Now you can win a free electric wok or toaster oven. Never underestimate the importance of toaster ovens.<\/p>\n

* January in Atlantic City<\/strong> wasn’t just good for traditional gambling. Sports betting shot 185% upward and Internet gaming raked in $55 million, 64% more than last year. Parlay cards won $19 million alone. Basketball generated the most handle\u2014$177.5 million\u2014but football won more ($10 million) than roundball ($9 million). That’s a sizable cushion atop the $192 million won at the slots and tables. It also marks 20 consecutive months of gaming-revenue growth for the Boardwalk. Who says Atlantic City isn’t on the comeback trail?<\/p>\n

*\u00a0Facts B, as the new saying goes. Unless you’re Rick Heidner<\/strong>, that is. He’s claiming that the leakage of the fact<\/a> that he was the subject of federal search warrants led to Illinois Gov. J.B. Pritzker<\/strong> (D, pictured<\/em>) kicking him out of a \"\"racino acquisition last year. It’s a good thing Pritzker learned of Heidner’s seamy associations or God knows who might have been infiltrating Tinley Park<\/strong>. If you live in Nevada<\/strong>, a gaming license is a privilege. If you live in Heidner’s head it’s an entitlement. Heidner is also fighting the revocation of his gaming license for allegedly offering a bribe<\/a>. If he’s not crooked he’s got extremely poor judgment at least. For its part, the Illinois Gaming Board<\/strong> is not denying the leak<\/a>, chalking it up to\u00a0\u201can isolated incident involving one employee who acted alone and outside the scope of their duties.\u201d That’s not entirely reassuring when you consider that data dumps on Mrs. Heidner and her kids were included in what was less of a leak than a deluge. Heidner doesn’t belong in the gaming industry but why was the IGB sitting on sensitive information that would disqualify him?<\/p>\n

* MGM Resorts International<\/strong> CEO Jim Murren<\/strong> may be pulling a fast one on the way out the door. He’s reportedly trying to shop the land<\/a> \"\"underneath underperforming MGM Springfield<\/strong>. Since a transaction like this could be a cozy, semi-inside deal with MGM Growth Properties<\/strong>, it’s worth watching closely to see whether the sale fairly reflects the casino’s (declining) cash-flow or whether MGP is overpaying for a clunker. We’ll get the next set of Springfield numbers Feb. 18, although it’s too soon for Murren’s recent shakeup of the property to start manifesting itself on the bottom line.<\/p>\n

* In a blow to the working man, the Canadian Federal Court of Appeals<\/strong> ruled against slot attendant Cheng Xia<\/strong>, who was fighting the taxation of his tips from winning gamblers. Considering how little dealers are other \"\"tipocracy workers get paid in base salary, dunning them for tips seems like governmental greed to us. Xia received $29,327 in salary for 2012 (hardly a living wage) but another $39,219, which he did not report as income. Players who strike it big get off easily, though, not having to pay tax on their winnings because they’re not constant income\u2014unless you’re a professional gambler. Xia tried to split the difference, arguing that his tips were a \u201csource or category of jackpot winnings.\u201d<\/p>\n

That didn’t fly with\u00a0the court. It noted that the Income Tax Act<\/strong> codifies taxable income as salary plus\u00a0\u201cother remuneration, including gratuities.\u201d Seems pretty cut-and-dried to us. Opined Justice Yves de Montigny<\/strong>,\u00a0\u201cIt is clear that the evidence supports a finding that the appellant was liable for willful blindness and gross negligence.\u201d Adding injury to insult the court fined Xia an additional $8,411 for aforesaid negligence. Do you think he’ll be a little more forthcoming with the inland revenue next time?<\/p>\n

* Living in Georgia<\/strong> means sometimes having to explain things like this<\/a>. It’s just harder and harder to run a good grift these days.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to the Boston Globe, a “sense of reality” in sinking in at Encore Boston Harbor that it has to appeal to somebody besides high-income demographics. “This shift was evident recently when a bright-red taco truck appeared on the gambling … 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":[23,266,18,152,58,37,53,112,245,254,25,243,32,31,87,233],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/26130"}],"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=26130"}],"version-history":[{"count":5,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/26130\/revisions"}],"predecessor-version":[{"id":28305,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/26130\/revisions\/28305"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=26130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=26130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=26130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}