MGM: Crossing fingers and hoping; Bloodbath in Indiana

MGM SpringfieldAfter several ups and downs, MGM Resorts International finds itself justthisclose to a casino in Springfield, Massachusetts. The state’s equivalent of the Nevada Gaming Control Board urged a finding of suitability. Whether the circumspect Massachusetts Gaming Commission agrees hangs upon several factors. One of them is the company’s somewhat cavalier employment of ex-board members Terry Christensen while he was under indictment for felony wiretapping: “Despite his indictment, resignation from the Board and ultimate conviction, Christensen was allowed to engage, on a repeated and prolonged basis, in certain sensitive and non-public corporate matters of MGM Resorts.”

That indiscretion predated the Jim Murren presidency, as did the decision to partner with Pansy Ho in order to get into Macao. Ho fell on her sword for MGM, telling investigators she had little involvement with the gaming James-Murrenside of the property. I would have expected J. Terrence Lanni‘s circumvention of the MGM compliance committee back during l’affaire Ho to have been an issue in Massachusetts, since it’s what got the company into trouble with New Jersey. (But, early on the report notes, “at times MGM goes beyond what is required by regulators in Macau.”) It could still arise, I suppose. But, for the moment, there’s ground for cautious optimism in re MGM (and despite some jiggery-pokery by a couple of Brimfield debtors who aren’t part of MGM). And if MGM gets in, then the less scandal-dogged Wynn Resorts has to be a shoo-in for Everett. So, all in all, it’s a good day for Big Gaming.

Slots on the run. Ever since its opening, Horseshoe Cincinnati has been on a nine-month tear through the southeast-Indiana casino market. Revenue in the miami-valley-gaming-fb-600area is down 25%, and Hollywood Casino Lawrenceburg, Belterra Casino Resort and Rising Star Casino Resort are tightening their belts. The most significant move is a dramatic reduction in slot inventory, as 11% of machines have been removed from casino floors. This may help the casinos but it’s hardly good news for manufacturers: Instead of replacing machines that become dysfunctional or obsolete, southeast-Indiana casinos will more likely just subtract more gaming positions from their inventory. However, three racinos are soon to open in Ohio, so we needn’t fear for the manufacturers overmuch.

In a rare look inside its books, Affinity Gaming (overlord of the Primm market and owner of Silver Sevens in Las Vegas), reported revenue declines for the year. It’s looking at a 2%-3% slippage from last year.

Meet O.B. Osceola Jr., the matchmaker who put the Menominee Tribe and Hard Rock International together in a casino-development deal. It makes an interesting read while we wait for Wisconsin Gov. Scott Walker (R) to issue his oft-postponed decision.

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