Stiffs and Georges

After a boffo February, the Silver State also posted extraordinary numbers in March. As Deutsche Bank headlined its report, “Different Month, Same Tune.” Analyst Carlo Santarelli cautioned, “we believe the underlying trends are not as strong as the headline would suggest,” pointing toward slippage in slot handle and in table drop (down 10.5%), excluding baccarat. [...]

It was one of the stupefying follies of the Caesars Entertainment LBO that CEO Gary Loveman believed the company could take on $30 billion in debt and continue to expand. Even as he tries to reshuffle old assets into new IPOs, Loveman is finally coming around to what some of us knew years ago: The [...]

It’s a longstanding tradition in Iowa that voters, once they’ve voted to approve a casino in their county, never have second thoughts. Selling non-gaming counties on new casinos, however, is a different story. Take Norwalk County, for instance, where a casino proposal only mustered 39% support. One opponent is perfectly accurate: The Wild Rose-sponsored project [...]

All but a very few Ameristar Casinos shareholders voted to approve the company’s takeover by Pinnacle Entertainment, in one of the fastest M&A deals in industry memory. Regulatory approvals are still pending in Nevada and other states but Ameristar always kept its nose clean and Pinnacle has generally behaved itself under previous CEO Dan Lee [...]

Philadelphia casino-applicant frontrunner Bart Blatstein has a new sidekick. He’s ditched Hard Rock International in favor of … Isle of Capri Casinos. It’s a big win for Isle and a very embarrassing public setback for the Seminole Tribe, which Blatstein characterized as too slow-moving for his needs. The new alliance also has sentimental ties for [...]

A preview of Ameristar Casinos‘ 4Q12 report draws an about-what-we-expected reaction from Joseph Greff of J.P. Morgan. Ameristar narrowly missed most of Wall Street’s expectations, a result Greff partially attributes to “sluggish … regional gaming spend.” Hardest-hit by the competition was Ameristar’s Kansas City casino (left, -8%), which has been losing business to Penn National [...]

It’s time to pay the piper for Boyd Gaming’s $1.5 billion takeover of Peninsula Gaming and Boyd employees are the first ones feeling the pinch. Three vice presidents — including 13-year Boyd veteran Dan Stark — and roughly 250 employees got the chop. This sort of thing is never pleasant, especially for the people getting [...]

MGM Resorts International, that’s who. As predicted, a lawsuit filed to overturn last November’s casino expansion was laughed out of court. Judge Ronald A. Silkworth called the litigation “baseless,” which is a nice way of saying, “Thanks for wasting my time with this rubbish, @$$holes.” This clears the path for MGM to move forward on [...]

We’ve learned two important things today. One, that the Mayan calendar is not the most reliable predictor of events. Two, that Ameristar Casinos‘ on-again/off-again talk about putting itself up for sale was back in “on” mode. Before hardly anybody got wind of what was happening, Ameristar cut a deal to be purchased by Pinnacle Entertainment. [...]

So says the Brookings Institute, which raised Las Vegas to 194th from 245th in GDP (now at $47K/year) and job growth over the last year, behind such feeder markets as Bakersfield, California and Monterrey, Mexico. That’s the first year of Sin City GDP growth in the last five. Domestically, Vegas was 46th among 76 United [...]

Casino revenues in the Pelican State were up 2% last month, entirely upon the strength of Pinnacle Entertainment’s L’Auberge Baton Rouge (above). It propelled the Baton Rouge market 58% upward, grossing $11 million at the expense of Argosy Baton Rouge (-10%) and especially Penn National Gaming’s Hollywood Baton Rouge (-25%). Still, Pinnacle is growing the [...]

While the voters have not yet spoken (although they’re getting an early start here), the betting markets are feeling less restraint. While the amount wagered online on the results of today’s presidential election — $16 million, according to one source — may seem frivolous, if not excessive, it’s a droplet compared to the obscene amounts [...]

While nobody quite matched the $221 million loss posted by Caesars Entertainment, the gaming industry didn’t lack for underachievers in 3Q12, thanks largely to softness in domestic casino markets. Ameristar Casinos reported a $16 million profit, despite a 2% revenue decline. Slightly improved performance in Colorado was offset by new competition in Kansas City (-7%) [...]

A natural disaster on the East Coast is fast becoming an industry-wide problem, its effects felt as far afield as Iowa, I kid you not. In light of the total havoc Hurricane Sandy has wrought upon travel, particularly by air, Las Vegas will feel an extra chill in the air, too. It seems nearly frivolous [...]

Shortly before Global Gaming Expo, I had a chance to sit down with Boyd Gaming CEO Keith Smith and query him on the company’s growth strategy, which will soon plant the Boyd flag in Kansas and Iowa. While many casino CEOs talk like an SEC filing, Smith is a pleasure to interview: Economical with words, [...]

Having waited too long and spent too much to ever get around to his long-rumored teardown of the Imperial Palace, the CEO/CFO/COB and prexy of Caesars Entertainment, one Gary Loveman, now finds himself perfuming a pig. Despite having more brand names under the Caesars umbrella than you could shake a Total Rewards card at, Loveman [...]

Last  night being my wonderful wife’s birthday, I took her out to dinner and thence to Taylor Hicks at Bally’s, now in the 10th week of an eight-week run (and, no, that’s not a typo). Big ups to Caesars Entertainment, incidentally, for supplying patrons with illuminated cocktail menus that can be read in the dark. [...]

Shares of Caesars Entertainment sank today on the news that CFO Jonathan Halkyard has quit, taking an equivalent position at NV Energy. Although the latter’s financial outlook is far rosier, with scant long-term debt, its revenue base ($611 million last quarter) is a fraction of Caesars’, making it difficult to characterize Halkyard’s leap as even [...]

Ever since a highly quixotic and even nonsensical attempt to take over most of Station Casinos, the cards have been played very, very close to the vest at Boyd Gaming. However, like another second-tier major, Ameristar Casinos, it’s showing renewed signs of aggression. Like Caesars Entertainment, it’s extending its presence into new (f0r Boyd) markets. [...]

In an attempt to shave a few months off their casino-approval timeline, the Massachusetts Gaming Commission is going to put the horse before the cart. (I guess you’d call it a “Massachusetts Miracle.”) Potential operators’ fiscal and ethical probity will be plumbed before applications are taken under consideration. This will hopefully spare the Bay State [...]