Mohegan Sun’s eastern inspiration; Bumper crop in Colorado

You’d never know Mohegan Sun has been experiencing financial difficulties on the home front to judge by the scale and expense of its InspireSouth Korean partnership with Incheon International Airport Corp. The two sides have finalized conceptual plans for Inspire Integrated Resort and they’re ambitious to say the least. The linchpin would be a 250-table, 1,500-slot casino, augmented by two hotel towers with an aggregate 1,000 rooms. Other components would be a retail mall, art gallery, music venue, an arena seating 20,000 people, an amusement park, a “Korean cosmetic and beauty hub [and] a Korean village celebrating Korean food and music, and a Native American cultural and arts experience.” You know, just your average casino.

An incomplete cost estimate for Inspire tops out at Continue reading

Posted in Architecture, Colorado, Economy, Massachusetts, MGM Mirage, Mohegan Sun, Neil Bluhm, Regulation, South Korea, Steve Wynn, Wall Street | Leave a comment

Macao: Victory or status quo?; No more soft opening at Linq

Deutsche Bank was predicting a 37% dropoff in Macao gaming revenues for June. They came in 36% under last year’s numbers. Is this Galaxy Macaogood news or not-so-bad news? Probably the latter. The novelty factor of Galaxy Phase II was quick to fade (everywhere except at Galaxy, it seems), as the sequential decline in Macao from May to June was 12%, not the historical 8%. Galaxy, however, evicted Sands China from the top spot in market share of table-game play, 24% to 22%, with Sociedade de Jogos de Macau close behind at 20%.

Wynn Macau (11%) and MGM Grand Paradise (10.5%) did surprisingly well against Continue reading

Posted in Architecture, Economy, Environment, Harrah's, Macau, Melco Crown Entertainment, MGM Mirage, Sheldon Adelson, Stanley Ho, Steve Wynn, Technology, The Strip, Wall Street | Leave a comment

Loveman: The blessed and the damned

Bankruptcy’s good for Caesars Entertainment Operating Co., which posted a $53 million profit in April (not having to pay interest on IMG-20130507-00006$18.4 billion in debt can’t hurt). As for outgoing CEO Gary Loveman, his move upstairs to the chairmanship of the Caesars Entertainment empire plays to mixed reviews in the Wall Street Journal. He is praised for acts of kindness toward the families of Caesars executives, as well as for a willingness to take the mickey out of himself (not a trait I witnessed in any of several encounters with Loveman).

He also gets zinged for his decision to live in Boston and essentially run Caesars from Continue reading

Posted in Economy, Harrah's, Macau, Marketing, Maryland, Massachusetts, New York, Ohio, Pinnacle Entertainment, Regulation, South Korea, The Strip | Leave a comment

This just in … Trump dumped

Our long television nightmare is over.

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Pushback against Adelson; Packer’s pretension

“Poker is an all-American game. It’s a game that I learned as a teen and continue to play today. Just like millions of other players I enjoy the Bartonstrategy and skill involved.” So said Rep. Joe Barton (R) as he introduced the Internet Poker Freedom Act, a counterthrust to Rep. Jason Chaffetz‘s efforts to shut down online gambling altogether. (It should be noted that Internet gambling was never outlawed at the federal level, only the processing of financial transactions related thereto … creating a legal penumbra in which operators like PokerStars continued to operate.)

Unfortunately, Barton’s bill would authorize the federal government to license Continue reading

Posted in Architecture, Australia, California, CityCenter, Cosmopolitan, Entertainment, Hard Rock Hotel, Harrah's, International, Internet gambling, James Packer, Lawrence Ho, Macau, PokerStars, Politics, Regulation, Taxes, The Strip, Warner Gaming | Leave a comment

Quote of the Day

“Can the one-armed bandit reinvent itself? There is no doubt that gaming, specifically the slot machine, needs a face-lift.” — Deutsche Bank analyst Andrew Zarnett on new developments in casino technology.

Posted in Marketing, MGM Mirage, Technology | Leave a comment

Dispatch from Macao

Deutsche Bank analyst Carlo Santarelli visited Macao recently and found “limited signs of help on the way.” For instance, the anti-Sands-Cotai-Centralcorruption campaign continues merrily forward, with arrests up 32% from last year. Give a dearth of VIP play, operators are moving more table games into the mass-market areas in their Cotai projects. There’s also hope, albeit cautious, that a compromise may be worked out in the no-smoking policy whereby smoking lounges could be retained on casino floors.

While Santarelli senses no major decline in business forthcoming, “we found nothing thesis changing and continue to see more Continue reading

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Strip treads water in May; Penn a big hit in Massachusetts

For all the hoopla about the (fixed?) Mayweather-Pacquiao fight, Strip gaming revenues sent mixed signals. The game that matters most, baccarat, saw somewhat less play (-7%) but the house got beaten badly, Baccaratits winnings down 36%. By contrast, all other table games saw 23% more volume and revenue. Slot coin-in was up 6% but here luck was with the house, which saw 12% higher winnings. Concluded J.P. Morgan analyst Joseph Greff, “Overall, we continue to think that LV Strip can generate low to mid-single RevPAR and visitation growth, though given a likely slowdown in Chinese players, we expect the market to continue to experiencing volatility in baccarat play.”

While the Strip only saw 1% growth overall, locals play generated an Continue reading

Posted in Alabama, Atlantic City, Boulder Strip, Downtown, Economy, Harrah's, Lake Tahoe, Laughlin, Massachusetts, MGM Mirage, North Las Vegas, Penn National, Regulation, Reno, Transportation, Wall Street, Warner Gaming | Leave a comment

Adelson’s minions do his bidding; Seminoles lose patience

Two presidential aspirants, Sens. Lindsey Graham (R) and Marco Rubio (R), joined forces with a gaggle of other senators in Macau Sands New Casinoreintroducing “Restoration of America’s Wire Act,” Sheldon Adelson‘s pet vehicle for keeping his competitors out of Internet gambling. Among those joining Graham were Sens. Dianne Feinstein (D) and Kelly Ayotte (R), giving the bill bipartisan and bicoastal sponsorship. It’s not clear from the language if state lotteries would still be allowed to use servers outside their borders but the horsey set still gets a carve-out for bets on the ponies.

Free-market conservatives are expected to oppose the bill, as are Continue reading

Posted in Florida, Harrah's, Internet gambling, Macau, MGM Mirage, Politics, Regulation, Sheldon Adelson, Technology, The Mob, Tribal | Leave a comment

Ruffin loses in Kansas; Expanded New Jersey gambling dissed

Three casino proposals were weighed in the balance and two were found wanting, as the Kansas State Lottery Gaming Facility Review Board sifted the pros and cons, ultimately settling on the
ruffinlowest-budgeted of the contenders, Kansas Crossing. The project, named for its strategic location at the intersection of U.S. 400 and U.S. 69, was deemed to be of the best size and the most realistic in its revenue projections. The fact that several of its investors, somewhat incestuously, are involved with two other Kansas casinos actually counted as a plus. Kansas Crossing got five of the seven votes.

Phil Ruffin‘s Camptown Casino didn’t garner a single Continue reading

Posted in Atlantic City, International, Kansas, Marketing, Massachusetts, Mohegan Sun, Phil Ruffin, Politics, Racinos, Tribal | Leave a comment

Quote of the Day

Glendale casino 2“I understand the desire to stick it to the tribe, given that it has outmaneuvered, well, everyone. But this lawsuit seems like a loser for the state … I haven’t seen any signs of plague ravaging the land. No frogs running amok. Not so much as a single locust.” — Arizona Republic columnist Laurie Roberts, advocating that the state, with political jujitsu, legalize racinos instead of continuing to fight the Tohono O’odham Nation‘s Glendale casino project.

Posted in Arizona, Racinos, Taxes, Tribal | Leave a comment

Big legal bill for Steve Wynn; SLS Las Vegas craters

In case Steve Wynn is having second thoughts that maybe it was a bad idea to try and muzzle stock-picker James Chanos, a federal court Wynn Forbesmade it official. On top of two defeats in the courtroom, Wynn has been handed a $422,380 bill for Chanos’ legal expenses. Chanos had asked for six hundred dimes but, as John L. Smith puts it, “I’m guessing Wynn’s legal eagles didn’t brag to their client that they got him a nifty 25 percent discount.”

Chanos’ crime was basically to tell the truth about the volatility of the Macao casino business and its treacherous undercurrents. As though to Continue reading

Posted in Colony Capital, Cosmopolitan, Entertainment, Genting, James Packer, Macau, Marketing, Massachusetts, MGM Mirage, Sahara, Sam Nazarian, Sheldon Adelson, SLS Las Vegas, Steve Wynn, The Mob, The Strip, Tribal, Wall Street | Leave a comment

Billion-dollar bonanza in Macao; Mob boss returns

Casino investment in the U.S. has largely been a bust for private equity firms. However, two funds — Silver Point Capital and Oaktree Capital Management — could be about to hit the jackpot in Macao. macau-studio-cityIt seems that Melco Crown Entertainment just secured a package of loans and credit lines. What do Lawrence Ho and James Packer plan to do with all that money, especially since they intend to draw down the loan portion immediately?

The answer is, buy out Silver Point and Oaktree, making Melco Crown the sole owner of Studio City, its rescue project on Continue reading

Posted in Economy, International, James Packer, Lawrence Ho, Macau, Melco Crown Entertainment, MGM Mirage, Singapore, Stanley Ho, The Mob, Tourism, Wall Street | Leave a comment

Election wins for Foxwoods, Golden Gaming; New boss at Beau Rivage

Almost lost in the excitement over the opening of Plainridge Park, in Plainview, is a little-reported event: New Bedford‘s vote on New_Bedfordcasino host-community status. To say that KG Urban Enterprises won is rather an understatement. It garnered 73% of votes cast, in a rout of anti-casino forces, who were evidently unmotivated to get out and vote. (Turnout was light: 21%.) This sets up a confrontation between KG’s partner, Foxwoods Resort Casino, and Neil Bluhm‘s Rush Street Gaming for the last casino license in Massachusetts.

Unless Bluhm or KG Urban can get their casino to Continue reading

Posted in Current, Election, Foxwoods, Golden Gaming, Harrah's, Lyle Berman, Massachusetts, MGM Mirage, Mississippi, Neil Bluhm, Ohio, Penn National, Racinos, Regulation, Steve Wynn, Wall Street | Leave a comment

Atlantic City fights back; Packer a good bet again

After seemingly being in shock from the stampede to put casinos in northern New Jersey, civic leaders of Atlantic City are starting to put up a fight. The terms of battle vary, with some dead-set against a breaking of the Boardwalk’s monopoly, and others saying the goal is to get as much money for Atlantic City out of outstate casinos as possible. Mayor Don Guardian took a hard-line stance, saying,  Continue reading

Posted in Atlantic City, Economy, Hard Rock International, Internet gambling, James Packer, Macau, MGM Mirage, Mississippi, New York, Politics, Sheldon Adelson, Tropicana Entertainment | Leave a comment

Penn primed for Plainridge launch; Little tribal traction in Maine

Are executives at Penn National Gaming getting high on their own supply … of slot machines, that is? The industry’s desired average for Healeyslots is $200 but Penn is predicting a sky-high $500/slot/day at Plainridge Park, which opens tomorrow, inaugurating the casino epoch in Massachusetts. “I don’t see Plainridge getting that kind of money. Almost twice what Foxwoods does on its machines? I don’t think so,” Lasell College Assistant Professor of Political Science Paul L. DeBole told the Boston Globe. Even Penn’s most successful racino in Ohio ‘only’ does $290/VLT/day. Laudably, Penn will have problem-gambling counselors on site 16 hours a day.

Penn will also Continue reading

Posted in Entertainment, Maine, Massachusetts, Penn National, Politics, Problem gambling, SLS Las Vegas, The Strip, Tribal | Leave a comment

Quote of the Day

“It’s as if these regulations were drafted in a vacuum by someone who has no idea about the gaming industry and how it operates.” — David Bean, Puyallup Tribe council member, on the IRS‘ proposed lowering of the threshold on jackpot reporting, which is estimated to create a 300%-500% increase in “IRS lockups” of slot machines.

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Massachusetts enters the fray; Delaware racinos press their case

It’s hard to believe but we’re only a few days from the opening of Plainridge Park Casino, bringing gambling to one of the last major, Penn Plainvilleuntapped markets in the U.S.: Massachusetts. While the Penn National Gaming property hasn’t been entirely free from controversy, it also comes with a ready-made player base in the form of the 7,500 Bay Staters who drive to Rhode Island every day for their fix of slot action.

Already it has literally paved the way for newly improved roads in Continue reading

Posted in Atlantic City, Delaware, Economy, Florida, Genting, Macau, Massachusetts, MGM Mirage, Penn National, Racinos, Regulation, Rhode Island, Sheldon Adelson, Stanley Ho, Steve Wynn, Taxes, The Strip, Tribal | Leave a comment

Quote of the Day

“Because of your reporting, we’ve seen patrons using casinos and card clubs to conceal narcotics transactions, to move money in support of international fraud schemes, to launder real estate fraud money, or to transfer money for other illicit purposes.” — FinCEN Associate Director of Enforcement Stephanie Brooker, telling casino executives that the good news is that they’re doing a much better job of regulatory activity and the bad news is that their properties seem to be revealed as beehives of dodgy transactions.

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More grief for Uncle Carl; Bluhm backs down

Carl Icahn has won his gambit to take over Trump Taj Mahal but that doesn’t mean he and Unite-Here are all lovey-dovey. Although Icahn earlier called Trump Entertainment Resorts the most icahndistressed company he’s ever seen, he’s giving CEO Bob Griffin a reprieve and $15 million a year to fix up the Taj, starting with its exterior. However, slapping a new coat of paint on this house of cards won’t address the labor turmoil. Unite-Here continues to appeal the revocation of health benefits and pension contributions. Griffin and Icahn were so petty they even took away workers’ paid lunch breaks.

Icahn has positioned all of this as a necessary survival mechanism and has repeatedly threatened Continue reading

Posted in Architecture, Atlantic City, Carl Icahn, Cordish Co., Harrah's, history, Maryland, MGM Mirage, Neil Bluhm, New York, Penn National, Regulation, Taxes, Trump Entertainment Resorts, Unite-Here | 2 Comments