“There will never be another Mohegan Sun. That’s the way the market has shifted.” So says Mohegan Tribal Gaming Authority CEO Mitchell Grossinger Etess on the smaller, economy-sized casinos he and his fellows will have to build in New York State, if they have the winning bids. The conundrum is to build a resort that has enough curb appeal and amenities to win the competitive battle — but inexpensive to assure that your investment is recouped. It’s a phenomenon that’s been dubbed “the Goldilocks zone.”
Etess knows whereof he speaks. Revenue continues to fall at Mohegan Sun and he’s proposing to spend Continued >>
Sue Lowden is back in the news, not for her political activities but as secretary and public face of Archon Gaming, whose 27 acres atop the Strip are a hot property again, following the opening of SLS Las Vegas. Dissident investor and frequent thorn in the Lowdens’ side Esplanade Capital has made a purchase that ought to be the dream of a lifetime for an Archon shareholder: $21.65 a share — a 21% premium. That’s a fat price for Archon’s slim portfolio of assets, headlined by flagship Pioneer Hotel & Gambling Hall in Laughlin.
Taking its offer public, Esplanade fired off an open letter to the Lowdens. “ I was afforded the opportunity to speak with the Board of Directors … and reiterate our view that the Company should publicly commit to a sales process with a level playing field. While disappointed, I am not surprised that this demand and my follow-up since have been rebuffed,” writes Esplanade President Shawn W. Kravetz. Continued >>
In the end, the Showboat Atlantic City had a good run of it, lasting almost three decades on the Boardwalk. It succumbed, in part, to wounds inflicted by owner Caesars Entertainment, which cut into its customer base by building Harrah’s Philadelphia and, toward the end, shifting its priority to a New York State casino. A few years of that attitude and, the next thing you know, Showboat security is yelling, “Go home! We’re closed” at taxi drivers.