D-Day for Mohegans, Penn; MGM restructures

In Massachusetts, initial approval will be granted or denied to Mohegan Sun and to Penn National Gaming as prospective operators. In both cases, it seems unlikely that the Massachusetts Gaming Commission with unearth any dead bodies. The focus will be on ethics and finances. Penn is somewhat questionable regarding the former and Mohegan Sun’s problems with the latter aren’t exactly news.

However, Penn’s bad behavior is usually confined to election season Mohegan Palmerand it’s extremely difficult to see either operator getting knocked out in this preliminary round. The Mohegans, of course, still have to get the blessing of voters in Palmer. If that happens, it’s on the second phase of the application process. (Penn already has a deal in place in Plainridge.) Tomorrow’s and Friday’s hearings will look at “the integrity and honesty of the company itself, the financial stability, business practices, history of compliance in other states and possible lawsuits involving the casino.” Mohegan could take some lumps with regard to financial stability but otherwise I expect both companies to come through with flying colors.

Suffolk Downs 2Hitting the streets. One doesn’t want to speak ill of the clergy but they’re pulling out the stops in an effort to halt Suffolk Downs at the ballot box. Rev. Thomas Domurat called it “probably one of the worst things that could happen to our community.” Oh, I can think of much worse things. Circulating a petition asking Suffolk Downs to “voluntarily withdraw” just makes the clergymen look out of touch and hopelessly optimistic. If they’re going door to door, they’d be better off trying to change “yes” votes to “no,” much as happened in West Springfield, where Hard Rock International found itself upended.

If you ask patrons of Suffolk Downs, it’s a slam-dunk “aye.” Opinions in the surrounding community are divided. I guess they didn’t get the memo that they’re about to be inundated by Caesars Entertainment in Chinese high rollers and other international “whales.”

While Caesars fights off near-term debt maturities, MGM Resorts International is restructuring long-term debt, looking to extend payments that come due in 2016-17. The company, which pegs Crystals occupancy at 85%, is also looking to buy out Dubai World‘s half of Aria, which speaks well to the latter’s performance. Caesars’ latest stock float, meanwhile, was a disappointment. It brought in $200 million rather than the expected $260 million.

This entry was posted in CityCenter, Current, Dubai, Hard Rock International, Harrah's, Massachusetts, MGM Mirage, Mohegan Sun, Penn National, Politics, Regulation, The Strip, Wall Street. Bookmark the permalink.