By this point, it’s hardly news that Lucky Dragon Casino is on track to open in December, breathing some additional life into the north Strip (we hope). However, Lucky Dragon execs continue to argue that they should have received tax-increment financing, a public subsidy that no other Las Vegas casino has requested in over 20 years. The pitch failed with the City Council, which voted it down overwhelmingly. “After all, it’s a legal business, it’s not something you should discriminate against,” argued the lone dissenter, Bob Coffin. Lucky Dragon COO David Jacoby went farther, arguing for a sweeping implementation of TIF: “Other states and cities have used TIF for casino properties, and it’s worked out well for them. It seems to me that we should support our largest industry here, which is casinos, with the same sort of assistance other states have been providing the gaming industry.” Ah yes, but those cities and states have much smaller gaming industries, too. If cities and counties in Nevada were to start underwriting the omnipresent casino industry, the toll on the public purse would be great indeed.
* The Gordian Knot otherwise known as the Baha Mar megaresort has been cut and the solution seems to please almost no one except Continue reading
Glenn Straub has either thrown up his hands over the task of renaming Revel or is feeling the spirit of democracy. Either way, he’s taking suggestions from the Twitterverse as to potential new monikers, with a $10,000 for the winning entrant. (We don’t think it will go to the person who nominated “Crapsino.”) We could get behind “Straub Mahal,” though and — as the keeper of four cats — we definitely like the pitch for a feline-themed casino. Straub’s capacity to surprise certainly shows no signs of abating.
Resorts Casino Hotel President Mark Giannantonio, meanwhile, struck a baleful tone at a discussion of Continue reading
Posted in Atlantic City, Charity, Downtown, Election, Entertainment, Glenn Straub, history, Internet gambling, Iowa, MGM Mirage, Mohegan Sun, Neil Bluhm, New York, Oklahoma, Pennsylvania, Phil Ruffin, Politics, Revel, Sports, Tamares Group, Taxes, The Strip, Transportation, Tribal
April saw mixed fortunes the Las Vegas Strip. Although overall gambling revenue was only up 1.5%, winning percentages tended to favor the house by considerable amounts. For instance, although baccarat players wagered 21% more but house win was up 10%. “While we expect the market to continue experiencing volatility in baccarat play given a slowdown in Chinese players, this drag should moderate,” wrote JP Morgan analyst Joseph Greff. Other table games (in which Nevada now includes poker) saw 11% higher wagering but less than 2% more house win. Players were luckiest at the slots, with casino win down 4% on 1.5% higher coin-in. In an odd accounting quirk, slot handle was fully counted (although April ended on a Saturday) but revenue was not.
Downtown Las Vegas had a bad month, off 13.5%, while North Las Vegas dropped 14% and the Boulder Strip dropped off a staggering Continue reading
Posted in Atlantic City, Boyd Gaming, California, Downtown, Economy, Election, Lake Tahoe, Laughlin, Law enforcement, North Las Vegas, Reno, Sports, The Strip, Wall Street
California state Rep. Adam Gray‘s online-gaming bill comes under some close scrutiny from analysts Steven Eichorn and Jeff Ifrah. As expected, there is no “bad actor” clause that would explicitly keep Unlawful Internet Gambling Enforcement Act scofflaws like PokerStars out of the Golden State, although there is some placeholder language where such a clause could go. However, the Gray bill prescribes two forms of suitability investigation, the more stringent of which is such a regulatory colonoscopy that only firms with the cleanest of hands could hope to transcend it. For instance, “past and present financial affairs and standing, and business activities, including whether the applicant or an affiliate of the applicant has a financial interest in any business or organization that is or was engaged in any form of gaming or transactions related to gaming prohibited by the law of the federal or state jurisdiction in which those activities took place.” Whoops, there goes PokerStars.
True, the language isn’t an automatic disqualifier but it’s pretty daunting (and that’s just a small sample). Considering the amount of money they expect to make Continue reading
Posted in Atlantic City, Boyd Gaming, California, Genting, Internet gambling, Iowa, Law enforcement, MGM Mirage, New York, Penn National, PokerStars, Politics, Regulation, Singapore, Stanley Ho, Tribal
Sheldon Adelson is feeling bullish on the Las Vegas market these days. Undeterred by the debut of T-Mobile Arena, he is proposing a 17,500-seat concert venue, to be built on underutilized land behind Venelazzo. Adelson has formed a consortium with Live Nation Entertainment, Madison Square Garden Co. and other partners to build the arena, which is as yet undesigned and unbudgeted. The concert hall, which would be Las Vegas’ third-largest, behind T-Mobile and the Thomas & Mack Center, would hew to the classic horseshoe design, with the goal of providing everyone with an unimpeded view of the stage. In addition to musical performances, boxing matches and MMA brawls would be staged there, although team sports have been explicitly ruled out.
“At a time when significant conversations are taking place about the city’s future tourism needs, a state-of-the-art venue designed, built and exclusively dedicated to bringing the world’s greatest musical and entertainment acts to Las Vegas is the type of development we should all be excited about,” said Adelson.
He already has three theaters and they would all comfortably fit into the newly proposed one (with room left over for lounges and clubs), as they hold an Continue reading
Posted in Architecture, California, Downtown, Entertainment, Geoff Freeman, history, Hooters, Internet gambling, MGM Mirage, Ohio, Pennsylvania, Sheldon Adelson, Sports, Texas, The Strip
Things were looking up for the daily fantasy sports industry in Illinois, where enabling legislation passed the state Senate 32-22. However, a hold has been put on the bill, which may not make it to the House. Why? Although the legislation would deal the casino industry in on DFS action, gaming executives complain that the regulatory mechanisms for DFS are flabby compared to what they have to comply with and they’d like to be permitted a wider array of Internet-gambling offerings, too. At present, DFS is illegal in Illinois, following an opinion rendered by Attorney General Lisa Madigan. While some solons are sympathetic to the casinos’ protests, others balked at the last-minute hitch. “With any bills that come anywhere close to gaming, everybody has their parochial interests that they pile on,” grumbled state Sen. Kwame Raoul (above), a co-sponsor of the bill, which would tax DFS revenues as low as 5% or as high as 30%.
“Today, Illinois and a handful of other states offer their lotteries over the Internet. And of course, for many years, Continue reading
Posted in Arkansas, Delaware, G2E, Hard Rock International, Harrah's, Illinois, Internet gambling, Macau, Marketing, Mississippi, Nevada, PokerStars, Politics, Steve Wynn, Tribal
He’s been handed a small budget ($15 million) for the task at hand, but new Trump Taj Mahal boss Anthony Rodio has been charged with undoing the damage inflicted on the property during the Bob Griffin era. This includes “reactivating lights and water fountains that had been turned off for years” (!), reopening the poker room — formerly one of Atlantic City‘s most renowned — renovating 180 worst-case hotel rooms and adding 250 rooms. He’ll also be restoring live music to the aptly named (for a Trump-branded property) Ego Lounge. “We want to let the world know that we are open for business and we’re not going anywhere,” is Rodio’s mission statement.
Given the vastness of the Taj, Rodio concedes that his team is still figuring out how they’re going to fill it out if and when Carl Icahn releases the other $85 million in restoration money he’s holding hostage, pending the outcome of the election. Although Local 54 of Unite-Here has authorized a strike at the Taj, an uneasy peace seems to be the status quo, with one employee characterizing Rodio’s takeover as Continue reading
Posted in Affinity Gaming, Atlantic City, Boyd Gaming, Cannery Casino Resorts, CityCenter, Dining, history, Internet gambling, Macau, MGM Mirage, Penn National, Regulation, Sports, Stanley Ho, Station Casinos, Tamares Group, Technology, Tropicana Entertainment, Unite-Here
“I believe that art is an essential element of quality of life. I believe that all people regardless of their level of interest, education in the arts or even inclination has a visceral positive experience when they are enriched visually. That visual experience could be a desert park that we built between New York-New York and Monte Carlo or it could be a statue or oil painting.” — MGM Resorts International CEO James Murren, on the role of public art in MGM’s properties.
Wall Street analysts are initiating coverage of Red Rock Resorts and they like what they see. JP Morgan‘s Joseph Greff put a $25 price target on the stock, emboldened in part by RRR’s acquisition of the Palms and its growing pipeline of management fees from Native American casinos. He also cited Station’s 400-acre land bank in the Las Vegas and Reno areas, which created the prospect of high return-on-investment properties and the advantage of controlling/preventing most new LV Locals capacity.” Observing that Red Rock has the largest market share (43%) of resident Las Vegas gamblers and that 90% of Las Vegans live within five miles of a Red Rock-owned property, he added that the “market has benefitted and should continue to benefit from a stable supply environment and from improving macro trends in the Clark County, LV economy, where key growth drivers such as population, jobs, wages, retiree base, and home prices are all trending positively.”
Deutsche Bank analyst Carlo Santarelli added “we trust LV locals fundamentals will continue to accelerate in the near term and remain sound over Continue reading
Posted in Columbia Sussex, Dining, Downtown, Economy, Environment, Harrah's, history, Kentucky, Palms, Reno, Station Casinos, The Strip, Tribal
Supply has overrun demand in Macao, where a wave of impending megaresorts is rolling in on an emaciated marketplace. But optimistic noises are being heard at Global Gaming Expo Asia, amid the robotic croupiers and other new toys. “The sentiments have become quite bullish of late. The market is showing signs of bottoming out,” said gaming analyst Ben Lee. However, for all of the new casino product, he says the industry is behind the curve of a market that is being reshaped in the image of middle-class players, not VIPs: “Macao currently still does not have the infrastructure to attract the family segment. We are talking about logistics, attractions, language and plain old service friendliness.” It sounds like Macao could learn a few tricks from Las Vegas after all.
Taking a contrary viewpoint is Andy Choy, late of the Riviera, who has popped up at Continue reading
Posted in Downtown, Economy, Entertainment, G2E, International, Lawrence Ho, Macau, Pennsylvania, Politics, Regulation, Steve Wynn, Taxes
In 20 years of covering the gaming industry, I have rarely seen an example of looting a company so brazen as the “sale” of Total Rewards from Caesars Entertainment Operating Co. to parent Caesars Entertainment for $0.00. And since Big Caesars
shows no intention of pursuing fair value for Total Rewards or any of the other assets that changed hands for a pittance, junior creditors want the right to sue to get a proper return on what they feel CEOC owes Caesars and vice versa. We’re not talking about chump change, either. The claims against Caesars could escalate as high as $12.6 billion. That’s a considerable hike on the $5.1 billion in fraudulent transfers identified by a court-appointed examiner. Senior creditors probably wish this would all go away so that that CEOC can be converted into a REIT, whereupon they’ll get a big-ass piece of equity in the investment trust.
Junior bondholders, however, aren’t amused by the spectacle of Caesars management, led by Chairman of the Board Gary Loveman, continuing to Continue reading
Posted in Boyd Gaming, Churchill Downs, Cordish Co., Dining, Eldorado Resorts, Entertainment, Greenwood Racing, Harrah's, Isle of Capri, Kansas, Louisiana, Mohegan Sun, Neil Bluhm, Oklahoma, Penn National, Pennsylvania, Pinnacle Entertainment, Planet Hollywood, Sheldon Adelson, Texas, Tribal
“In the short-term there will be conflicting information and worry about the aviation sector in the region, but we remain bullish on the long-term prospects on airlines flying out of, and headquartered in Gulf States (UAE, Qatar) specifically.” — Jonathan Galaviz, of Global Market Advisors, on last night’s disappearance of EgyptAir Flight MS804.
“My only problem is A.D.D.” read the T-shirt of one of the celebrants at last night’s opening of Top Golf, on the MGM Grand campus. He was certainly in the right place. If you are serious about honing your skills, you’ve come to the wrong place. But if you just
Architectural Photography by Michael Baxter, Baxter Imaging LLC
Architectural Photography by Michael Baxter, Baxter Imaging LLC
want to whack the heck out of some golf balls and feel better about your game by seeing others flounder, Top Golf is very much for you. Its sensory-overload environment couldn’t be further from the quasi-religious aura that pervades professional golf tourneys. It’s golf with a heavy infusion of Las Vegas, even including a nightclub. (What? You don’t think the Masters would be improved by having Afrojack scratching beats in Amen Corner?) I enumerated one high-volume music system, at least two swimming pools, two or three lounges — one with live music — and too many big-screen TVs to count. In addition to be able to watch, say, the NHL or NBA playoffs on the TV in your bay, you could follow both on the mammoth screens at the far end of the driving range. Those big boys had better be built to take some punishment: As expansive as Top Golf is, I saw some hackers booming tee shots all the way to the rear netting.
The food, which includes glazed shrimp and a superb Nutella pudding, is a cut above sports-stadium fare. Ditto the Continue reading
Posted in Boyd Gaming, Churchill Downs, Entertainment, Foxwoods, G2E, Geoff Freeman, Illinois, Internet gambling, Law enforcement, Lucky Dragon, Macau, Marketing, MGM Mirage, Mohegan Sun, Pennsylvania, Philippines, Regulation, Sheldon Adelson, SLS Las Vegas, Sports, Station Casinos, Technology, The Strip
“We can’t be trapped in a 40-year-old [gaming] paradigm … It very well may be that it is an athletic event.” — Nevada Gov. Brian Sandoval (R), on the quandary posed by e-sports, which his Nevada Gaming Policy Committee is pondering whether and how to regulate. Already both Mandalay Bay and the Downtown Grand have hosted e-sports tournaments.
His presidential aspirations having turned to dust, Sen. Lindsey Graham (R) is back to doing Sheldon Adelson‘s business, resurrecting RAWA. He has appended to an unrelated spending bill the following language: “Internet Gambling—Since 1961, the Wire Act has prohibited nearly all forms of gambling over interstate wires, including the Internet. However, beginning in 2011, certain States began to permit Internet gambling. The committee notes that the Wire Act did not change in 2011. The committee also notes that the Supreme Court of the United States has stated that ‘criminal laws are for courts, not for the government, to construe.’” It’s unclear whether this subterfuge will survive the process by which House and Senate bills are reconciled but eternal vigilance is the price of Internet gambling. Call your senators if you want to see this language quashed.
Center for Freedom & Prosperity President Andrew F. Quinlan takes umbrage at RAWA and its “origins as a crony handout.” He says the very name of RAWA is Continue reading
Posted in Atlantic City, California, Dining, Downtown, Entertainment, Internet gambling, Law enforcement, Massachusetts, MGM Mirage, PokerStars, Regulation, Sheldon Adelson, The Strip
Bowing to the inevitable, the Massachusetts Gaming Commission ratified MGM Resorts International‘s redesign of MGM Springfield, on which the casino company is already hard at work. What was the MGC to do? Tell MGM to go back to Square One? The casino company held all the cards and everybody knew it. “Seeing this again, it reminds me why we’re really excited about it,” said MGC Chairman Stephen Crosby, although we can’t second the emotion, given the distinct lack of “wow” factor in the revised designs. (Elimination of the hotel tower really hurt.) “You can have luxury that’s not necessarily in a high-rise tower,” project President Michael Mathis argued. If the purpose of the new look is to be fairly unobtrusive, MGM has succeeded with flying colors. Indeed, MGM is selling the redesign as a means of maintaining downtown Springfield‘s historical aura.
Paradoxically, MGM is characterizing the revision as a cost-saving measure at the same time that the budget has swollen to Continue reading
Posted in Architecture, Environment, International, Internet gambling, Massachusetts, MGM Mirage, Mohegan Sun, Politics, Regulation, Steve Wynn, Transportation, Tribal
William Weidner hasn’t finished Lucky Dragon Casino yet and he’s already flashing some leg at the Vietnamese government (or so it appears), seeking a $4 billion casino megaresort in Ho Chi Minh City (to most us, Saigon). Financing Lucky Dragon will be a very light lift compared to the capital-investment mandates in Vietnam. Luckily for Weidner, his partners include Cantor Fitzgerald, which ought to be good for a few bucks. The design will be farmed out to Steelman Partners. Since only non-Vietnamese citizens would be able to gamble at the resort, Weidner’s business acumen will be tested to the max. Making a $4 billion megaresort pencil out just on tourist traffic is a challenge even in the gambling capitals of the world.
* Station Casinos CFO Marc Falcone agreed implicitly with our friend American Gaming Guru that the Palms is Continue reading
Posted in Architecture, Boyd Gaming, Hard Rock Hotel, International, Lucky Dragon, Macau, Marketing, Morgans Hotel Group, Palms, Regulation, Sam Nazarian, Station Casinos, Wall Street
“Tribes are sovereign. But their casinos employ non-Indian workers. One argument used to sell casinos to the public is that they provide jobs. Those jobs should come with basic protections afforded by federal law.” — the Sacramento Bee on HR 511, backed by Rep. Loretta Sanchez (D, left), which would strip workers at tribal casinos of National Labor Relations Act protections.
An extra month helped Atlantic City post a banner April, up 6%. Citywide, 5% higher slot handle produced a corresponding increase in revenue, while 4.5% table-game wagering translated into 10% more winnings for the house. Borgata ($56 million) was up 4.5%, riding its slot win. Table players wagered 7% less and the house won 14% less. At the slots, however, Borgata was able to ride 12% higher coin-in to a 13% revenue gain. Borgata also continues to lead the market in Internet-gambling market share (23.5%), although Resorts Atlantic City — thanks to PokerStars — is now a serious contender, with 20.5%. In fact, the market is pretty evenly divided between all five players, with Caesars Interactive holding 19%, nipping at the heels of the Golden Nugget (19.5%), while Tropicana Entertainment hangs in there with 18%.
As for traditional casino games, despite a 4% drop in revenue, Trump Taj Mahal ($15 million) managed to stay out of last place, occupied by Resorts ($14 million, +14%), while Golden Nugget’s 16% gain was good for a $17 million gross. As for Continue reading
Posted in Ameristar, Atlantic City, Boyd Gaming, CityCenter, Golden Gaming, Harrah's, International, Internet gambling, Iowa, Isle of Capri, MGM Mirage, Mohegan Sun, Pinnacle Entertainment, PokerStars, Racinos, Sports, The Strip, Tropicana Entertainment, Warner Gaming
It’s official: Red Rock Resorts has purchased The Palms for $312.5 million. It got a bargain when one considers the inventory that comes with the deal — the Palms Place condo tower, 710 hotel rooms, 85 of the most famous suites in Las Vegas, 1,250 slot machines and 48 table games, plus a spacious race and sports book. Its mix of tourist and locals clientele is consonant with the business model Station has been pursuing at Green Valley Ranch and Red Rock Resort. The fate of the Palms’ employees is up in the air but, since they’re not unionized, I’d be surprised if Station didn’t keep them in place. (The noisiest objections to ratification of the deal are certain to come from the Culinary Union, though.) Station paid almost 9X cash flow for the Palms, a reasonable multiple when its proximity to the Las Vegas Strip is considered. Besides, the overall purchase is only slightly more than half of what it cost ($600 million) to build the Fantasy Tower alone. Station expects an 11% return on investment in the first year of operation, which is pretty good for the Strip market.
* Las Vegas Sands got a rap on the knuckles from Continue reading