Enormous changes at the last minute

By David McKee ~ July 28th, 2014 @ 9:56 am No Comments »

sweeney_colorAfter years of hand-wringing about the future of Atlantic City, there is a sudden imperative to do something about the seaside resort. It’s gone from a leadership vacuum to possibly having too many chefs in the kitchen. State Senate President Stephen Sweeney (D, left) is proposing the creation of a private-sector version of the CRDA to channel money from theoretical Meadowlands and Jersey City casinos. (“I just don’t want to give money to government, because I know what they do with it.”) From the point of view of Sweeney and others, Gov. Chris Christie‘s five-year grace period for Atlantic City but the sudden collapse of the casino market there calls for extraordinary measures.

Even Christie seems to be softening towards elements of Sweeney’s scheme, saying, “any expansion of gaming to other parts of the state would have to have, as an element to that plan, Continued >>

Pinnacle pestered; Penn profits; Pokies pilloried

By David McKee ~ July 25th, 2014 @ 12:55 pm No Comments »

Orange Capital, calling itself “unsatisfied,” has renewed its pestering of Pinnacle Entertainment to convert itself into a REIT. Orange claims that share value could be increased 60% to 90%. Unfortunately for Pinnacle customers, REITs are required to return 90% of taxable earnings to shareholders, which could have a deleterious effect on Pinnacle’s casinos, known for their quality.

Ameristar East ChicagoIt’s not like Pinnacle is on its uppers. Net revenue in the most recent quarter grew 108%, thanks to the absorption of Ameristar Casinos and to some recent cost-saving measures. (Not enough to stave off a $2.3 million loss, though.) “While so far trends are looking better than the second quarter, the change has not been meaningful,” said Continued >>

Regulators to Walsh: Not so fast, friend

By David McKee ~ July 25th, 2014 @ 11:38 am No Comments »

WalshBoston Mayor Martin Walsh isn’t getting off the hook so easily. He tried to fob the negotiation of a mitigation agreement with Wynn Resorts off on the Massachusetts Gaming Commission. The latter said ‘not so fast’ and ordered the city back to the bargaining table. And if that doesn’t work, the MGC will appoint an independent arbiter to cut the Gordian knot. “The city’s basically, without telling us why, said they’re … just abandoning that [Charlestown] section of the city,” explained Commissioner James McHugh. “We have some obligation to protect it. At the same time, we’ve got to maintain our neutrality.”

While somewhat craven, Walsh’s refusal to go to arbitration and risk the 50-50 chance of being stuck with the Wynn offer is understandable. While (010914 Everett, Ma) Renderings for the proposed Wynn Casino in Everett.Mohegan Sun is offering an extra-george $30 million upfront and $18 million a year, Wynn has only put $6 million and $2.6 million, respectively, on the table. There’s no comparison, so one can see why Walsh would fear to be stuck with the Wynn offer, if that were the case — especially if Continued >>

Great month for the Strip, for Louisiana not so much

By David McKee ~ July 25th, 2014 @ 9:35 am 1 Comment »

Dice-in-crapsBuoyed by heavy baccarat play, the Las Vegas Strip registered a 22.5% gain in June. The house played very lucky, too, with win up a staggering 155%. At the other end of the gaming spectrum, those slots must have been pretty tight, as casinos won 9% more on 13% less coin-in (with a day of May weekend revenue thrown in). Baccarat carried the rest of the table games, which were 2% down despite 6% higher drop. Strip gaming revenues are up over 3% for the year so far. June’s numbers shot past Deutsche Bank analyst Carlo Santarelli‘s projections for the Strip, which were ‘only’ a 10% gain.

It was mostly good news elsewhere. Downtown Las Vegas was up 12% and North Las Vegas 23%. The Boulder Strip gained Continued >>

Further Reading

Enormous changes at the last minute

Pinnacle pestered; Penn profits; Pokies pilloried

Regulators to Walsh: Not so fast, friend

Great month for the Strip, for Louisiana not so much

Quote of the Day

Penny pinchers; Tribal warfare in New Mexico; Who’s tops in Macao?

Has tribal gaming peaked?

Glimmers of hope on the Boardwalk

Adelson goes soft on Communism; Wynn befriends oysters

Megaflop at the Trop

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