Yesterday, Elliott Management announced that it owns 5% of Boyd Gaming. Shares of the company, which had closed just under $12, opened at $14. But is this a vote of confidence in Boyd? According to Seeking Alpha, “Elliott has a long track record of mounting activist campaigns in which it calls for a company to make big changes and/or put itself up for sale.” And there was Boyd, just last week, talking about expansion into Japan. Now the heavily leveraged company may have to fight off Elliott instead.
Boyd’s online gambling revenues at Borgata (and those of rival Atlantic City casinos) should see an uptick this month. The State of New Jersey has “eased the parameters” of geolocation along the state line, thinning the buffer. Said the Division of Gaming Enforcement‘s Kerry Langan, “We have worked with the geolocation vendors and casinos to enhance the technology to make it more accurate and reliable, and to reduce false negatives.” And if a few non-Garden State players slip through the ‘Net … ? There seems to be tacit agreement not to lose sleep over that.
Remember those ’2341′ keys that the Peppermill casino in Reno used to spy on Continued >>
“Whoever determined that 12 noon was the perfect check-in, check-out time was thinking of the housekeeping shift, not the guest.” – Cornell University’s School of Hotel Administration professor of marketing Chekitan Dev, on the Palms‘ new, round-the-clock checkout policy. It’ll be easier on guests — if harder on those maid who get moved to evening shifts.
“The problem is Iowa is not a free-market system It’s set up to encourage big-dollar investments, so the cannibalization issue is one we have to take into consideration.” — Iowa Racing & Gaming Commission Chairman Jeff Lamberti
There you have it. When the size of an industry is decreed by the state, cannibalization is an issue that must be weighed, not shrugged off as economic Darwinism. Not one but two consulting firms — Marquette Advisors and Union Gaming — told the IRGC that there’s no more room in Iowa for new casinos. “We do not believe there are any underserved counties in Iowa,” counseled Union Gaming while Marquette Advisors warned that a $150 Linn County casino project would siphon customers from as many as five surrounding markets. (A $40 million Jefferson casino by Wild Rose Entertainment is also being pitched to the IRGC.)
The next day, as though to reinforce the point, the IRGC released February revenues and they were Continued >>