{"id":90,"date":"2009-10-08T18:07:00","date_gmt":"2009-10-08T22:07:00","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/blogs\/dmckee\/index.cfm\/2009\/10\/8\/Whats-a-Trump-casino-worth"},"modified":"2023-01-20T06:55:14","modified_gmt":"2023-01-20T14:55:14","slug":"whats-a-trump-casino-worth","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/whats-a-trump-casino-worth\/","title":{"rendered":"What's a Trump casino worth?"},"content":{"rendered":"

Only $14 million in cash (plus a $100 million equity infusion), according to The Donald<\/a>. Bondholders say, we’ll see your $115 million and raise you $100 million. The latter would recoup at least some — but not very much — of their $1.25 billion debt under their plan, while Das Trump would send them away virtually empty-handed. (Moral<\/em>: When Donald Trump<\/strong> asks you for a loan, take a page from Nancy Reagan<\/strong> and Just Say No.)<\/p>\n

The bondholders’ assignment of a $75 million valuation<\/a> to Trump Marina<\/strong> seems awfully optimistic for what is, in essence, a corpse that can’t be sold. In essence, the real value proposition is resurgent Trump Taj Mahal<\/strong>, with the other two casinos scarcely better than throw-ins. The Marina is, if anything, an albatross around the company’s neck. Still, given that CEO Mark Juliano<\/strong> is going to exceptional lengths to champion the Trumpster’s bid, which is a big “screw you” to the debtholders, here’s hoping Judge Judith H. Wizmur<\/strong> holds firm for a more responsible solution.<\/p>\n

\"\"<\/p>\n

Ho: No!<\/strong> “I don’t see major resorts opening for the next couple of years now<\/em>,” says Lawrence Ho<\/strong>. thereby raining pessimism on the expansion plans of Las Vegas Sands<\/strong>, Wynn Resorts<\/strong> and Galaxy Entertainment<\/strong>. The younger Ho also speculates upon the Chinese government’s motivation for throttling<\/a>, then somewhat relenting upon travel to Macao<\/strong>. Interesting tidbit: Marketwatch.com<\/strong> reports that “Venetian Sands<\/strong>” [sic<\/em>] has cut its number of table games by 25%.<\/p>\n

Nevada revenues in<\/strong>. And yeah, they suck. They’re much less sucky than usual (-9%), showing an upward trend in baccarat plus two locals-oriented bright spots in the form of Aliante Station<\/strong> and M Resort<\/strong>. It’s unclear, though, how much of the growth generated by the last two is new business vs. redistribution of dollars from elsewhere in the valley. The Sun<\/em>‘s analysis is far more informative than that found<\/a> in the R-J<\/em>.<\/p>\n

Wait ’til next year<\/strong>. That’s the timeline for casinos<\/a> in Massachusetts<\/strong>. Even though western Mass looks like slim pickings, lawmakers will probably have to put a casino there just to get the bill onto the floor.<\/p>\n

Penn bid falls<\/strong>. Lenders to bankrupt Fontainebleau<\/strong> won a small victory or two, as the judge overseeing the case seems determined to keep lead developer Jeffrey Soffer<\/strong> as far from the disposition of F’bleau as possible<\/a>. (Soffer is both a debtor and creditor on the project.)<\/p>\n

F’bleau, for its part, revealed that Penn National Gaming<\/strong>‘s offer is now “substantially less” than $300 million, but would include money to replace the windows that are reportedly falling off the building. (One more reason not to build a Strip megaresort tower flush against the “pedestrian realm.”)<\/p>\n

Groundbreaking today<\/strong> for the long-awaited SugarHouse<\/strong> casino in Philadelphia<\/strong>, under the shadow of a stick-it-to-SugarHouse tax that’s been proposed in the Lege. Table games, meanwhile, might be off the table in the face of a $200 million lawsuit. You see, non-racino casinos are allowed to have 5,000 slots (in return for a $50 million fee). Small “resort” casinos — known as “Category 3” — only have to $5 million and get 500 slots (accessible only to guests). That’s proportional, obviously, and seems fair.<\/p>\n

However …<\/strong> lawmakers want to tilt the playing field by giving Category 3 casinos 30% as many slots as, say, Rivers Casino<\/strong> or SugarHouse, instead of 10% … and open those games to the general public, not just guests. Of course, the state can’t go to the one existing Category 3 casino and ask for another $10 million — can it? Casino operators are also solidly behind the GOP position on table games: $10 million upfront plus a 12% tax. But, unless House Dems completely capitulate, the gaming bosses are unlikely to get what they want, at least where the tax rate is concerned.<\/p>\n

Penn whiffs again<\/strong>. Although Penn Nat’l was supposed to be a bidder in the bankruptcy auction for the Lone Star Park<\/strong> racino, it evidently didn’t get into the action and the track went to the Chickasaw Nation<\/strong> for $27 million. (A lot less than Harrah’s Entertainment<\/strong> paid to get into Ohio<\/strong>.)<\/p>\n

Which means that if\/when gambling is legitimized in Texas<\/strong>, the Chickasaws will have a double advantage (parimutuel + tribal status), while Penn will be looking at yet another missed opportunity. Penn’s corporate strategy is a baffling alternation of rashness and hyper-caution.<\/p>\n

In other tribal news<\/strong>, much-criticized National Indian Gaming Commission<\/strong> Chairman Phil Hogen<\/strong> is gone<\/a>, thank God, and with him his new, more-restrictive Class II rules. Hogen was justly pilloried for attempting a rollback of hard-won gains in what games tribes could offer. His new rules reflected Bush administration paternalism toward tribes and while they’re officially postponed for a year, I think it’s safe to say they’re dead.* No wonder Rep. Dan Boren<\/strong> (D-OK) is smiling. Watch out for that doorknob, Mister (Ex-)Chairman.<\/p>\n

(* It’s probable the same thing would have happened under a President McCain, as either candidate would have brought a more enlightened attitude to D.C.-tribal relationships.)<\/p>\n

Supporters of video gambling<\/strong> are starting to push back<\/a> in Illinois<\/strong>, at least in rural, conservative McHenry County<\/strong>. So far it’s been the urban areas where this expansion of gambling hasn’t been gaining traction.<\/p>\n

A repeal of UIGEA<\/strong> continues to gain ground in the House of Representatives, even if it got pulled off the floor in the Senate. (Thanks for nothing, Harry Reid<\/strong>.) The money quote, literally, is a reference to an amendment Rep. Jim McDermott<\/strong> (D-WA) which would would specify that “corporate taxes owed on regulated Internet gambling activities are collected, as they currently are<\/em> from the land-based casino industry.” [emphasis added<\/em>]<\/p>\n

If that means what it implies<\/em><\/strong>, it would remove the spectre of industry-wide federal gambling taxation from the discussion and leave taxation to the states. If not, then the nose of the federal casino-tax camel is still sticking through the legislative tent. And you know where that leads.<\/p>\n

We’ve seen a nationwide gaming tax get shot down during the Clinton administration but there are desperate times, obviously. Republicans like Mike Huckabee<\/strong> and Rep. Steve King<\/strong> (R-IA) have been looking to sock it to casinos at the federal level for some years now, so I fear it could have bipartisan support, should such a debate come to pass.<\/p>\n

It’s playoff time<\/strong>. A tired, flat-footed Minnesota Twins<\/strong> squad looked positively dreaful last night, flailing at outside pitches from C.C. Sabathia<\/strong> (if you couldn’t reach that slider in the first inning, your arms aren’t going to be any longer in the seventh, son). Cliff Lee<\/strong> made short work of the Colorado Rockies<\/strong> (besides, Jim Tracy<\/strong> can’t win in the postseason), the St. Louis Cardinals<\/strong> look set to continue their tradition of postseason underperformance and my Anaheim Angels<\/strong> are forever reduced to a quivering heap of Jello in playoff games against the Boston Red Sox<\/strong>. Why am I having visions of brooms?<\/p>\n","protected":false},"excerpt":{"rendered":"

Only $14 million in cash (plus a $100 million equity infusion), according to The Donald. Bondholders say, we’ll see your $115 million and raise you $100 million. The latter would recoup at least some — but not very much — … 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":[23,113,28,42,59,7,52,67,58,22,37,94,63,62,112,93,91,71,115,69,95,33,25,12,92,74,57,32,31,114,20],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/90"}],"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=90"}],"version-history":[{"count":4,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/90\/revisions"}],"predecessor-version":[{"id":32225,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/90\/revisions\/32225"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=90"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=90"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=90"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}