{"id":27579,"date":"2020-07-22T07:56:35","date_gmt":"2020-07-22T15:56:35","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=27579"},"modified":"2020-07-23T09:43:29","modified_gmt":"2020-07-23T17:43:29","slug":"history-repeats-itself-this-time-as-farce","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/history-repeats-itself-this-time-as-farce\/","title":{"rendered":"History repeats itself, this time as farce"},"content":{"rendered":"\n

Caesars Entertainment<\/strong> is now Eldorado Resorts<\/strong>‘ bitch and, as Scott Roeben<\/strong> reports<\/a>, there’s already reason to be concerned, starting with layoffs at Caesars Palace<\/strong>. New CEO Tom Reeg<\/strong> is apparently wasting no time sending employees to the firing squad. He promised $500 million in “synergies” which, as Roeben says, rarely bodes well for the workplace (or customer) experience. Of course, Reeg gave those synergies right back to Louisiana<\/strong> when he promised $500 million in improvements to Belle of Baton Rouge<\/strong> and other Caesars properties. He also committed anywhere from $400 million to $550 million to Atlantic City<\/strong> improvements, money that’s sure to come out of Caesars’ hide somewhere else. Fixing something that wasn’t broken, Reeg actually spent money to create this woozy new logo for the Roman Empire:<\/p>\n\n\n\n

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Reeg is now committed to pulling $7.2 billion out of his sock drawer as a cash payout to shareholders. Where that money’s really going to come from is anybody’s guess, as super-acquisitive Eldorado is leveraged to its eyeteeth, as Roeben points out, and this is hardly a period in which the casino industry is exactly throwing off free cash flow. Besides, Caesars has extensive rent commitments<\/a> to Vici Properties<\/strong> and Gaming & Leisure Properties<\/strong>. Perhaps Reeg can recoup a few billion by selling Planet Hollywood<\/strong> (does he have Hard Rock International<\/strong> on speed dial?), maybe a few hundred million for The Cromwell<\/strong>, once Caesars’ pride and joy but now evidently surplus inventory. So much for the boutique experiment. Nor can those regional asset sales come through fast enough. If the economy doesn’t rebound by this time next year, Caesars may be headed for a date with an old flame: bankruptcy court.<\/p>\n\n\n\n\n\n\n\n

\u201cIt\u2019s certainly an older crowd right now than it was this time last year, when you had nightlife, day life and sports betting,\u201d Ocean Casino Resort<\/strong> CMO Mike Donovan<\/strong> told Stockton University<\/strong> academic Jane Bokunewicz<\/strong>, who says the Atlantic City is imperiled by a current lack<\/a> of what Millennials crave: “trendy restaurants, hot clubs, and concerts.” That’s not bad for gambling revenues per se<\/em> but definitely worrisome to the financial health of an integrated resort. By contrast Hard Rock Atlantic City<\/strong> President Joe Lupo<\/strong> reported \u201cConsidering the restriction of no alcohol, smoking and indoor dining, customer visitation was obviously lower than last year for all age demographics<\/em>,\u201d (emphasis added). <\/p>\n\n\n\n

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According to Bokunewicz’s studies, gambling was a very low priority for Millennials in casinos (attracting 20% of those surveyed), with restaurants and happy hours leading the way (80% and 66% respectively). They’re also notoriously averse to wearing PPE masks and practicing social distancing, which will keep them away from casinos. \u201cMillennials do enjoy casinos, too, but they\u2019re more interested in the social aspect of it than counterparts in other generations. It seems like they want to do it in groups, even when it comes to something like playing slot machines.\u201d And you may not see them there, Bokunewicz adds, because of their high amounts of student debt. PlayNJ.com<\/strong> analyst Dustin Gouker<\/strong> sees Millennials turning to online gambling, which has thrived during the current pandemic, especially poker. Gouker thinks reopening casinos will partly break that habit but we’re not so sure.<\/p>\n\n\n\n

Elsewhere in Atlantic City, Borgata<\/strong> is bringing up the rear in reopenings, starting with an invitation-only event July 23, followed by a formal resumption of business July 26. The delay was nothing untoward. Borgata executives wanted to rejigger their dining options<\/a> so as to offer an orderly alternative to Gov. Phil Murphy<\/strong>‘s ban on indoor eateries. Just think: July might be the first month in which Borgata doesn’t lead Atlantic City in gross gaming revenue.<\/p>\n\n\n\n

Sen. Mitch McConnell<\/strong>‘s conservative super PAC would be a mini PAC if it weren’t for Sheldon Adelson<\/strong>. In June he donated $25 million, or 83% of its total haul. It’s interesting, to say the least, that gaming has gone from being a right-wing whipping boy to its primary source of sustenance. That’s progress of a sort, even if we don’t agree with Adelson’s goals.<\/p>\n\n\n\n

Jottings<\/em><\/strong>: After years as general manager of Wynncore<\/strong>, exec Ramesh Sadhwani<\/strong> is calling it a day. He’s retiring on July 31 … Miss the old Stardust<\/strong> logo? Boyd Gaming<\/strong> has revived it to help promote a new mobile, social-casino game<\/a>. What’s old is new again … Scratch one sports book. Lagasse’s Stadium<\/strong> at Palazzo<\/strong> has closed for good … \u201cWe can\u2019t stop the party for a little flu,\u201d rationalized Cat’s Meow<\/strong> Director of Operations Ryan Carlson<\/strong> when his Downtown<\/strong> watering hole was fined for noncompliance<\/a> with Nevada<\/strong> masking orders. You’ll be laughing out of the other side of your face if you catch that “little flu,” Ryan … Finally:<\/p>\n\n\n\n