Progress and caution

International Game Technology made history yesterday when it unrolled its Powerbucks interstate, progressive jackpot. Under this technological umbrella, IGT games at 22 Caesars Entertainment and Boyd Gaming properties in Las Vegas can be connected with those at five casinos in Atlantic City. And that’s far from the end: Louisiana, Mississippi and Delaware are all studying the idea, which is to create slot prize pools that rival lottery payouts like Powerball. Luckily for them, winners will only have to pay taxes in the state in which they win. For all the creativity in the casino industry, it’s not often that one comes across a better mousetrap that will bring the world to your door. Powerbucks, however, looks like the real article.

To hear Gary Loveman tell it, you’d never know how much trouble Caesars Entertainment is in. That being said, somebody has to talk sense into Neil Cavuto‘s empty noggin, which Loveman endeavors to do with considerable patience and finesse. (A pity about the bad hair day, though.)

$1 million. That’s the price of a seat at the table as New York State prepares to start entertaining casino applications. In the case of Saratoga Casino & Raceway, it’s paying but not necessarily playing. Lead investor James Featherstonhaugh says ownership won’t be making a decision about casino expansion until next month (fees are due April 23) but wants to be sure and have a foot in the door. Hence the million-clam payment.

But this hardly seems like a decision taken lightly: There’s heavy civic and political opposition in the Saratoga Springs area to further casino expansion, so Featherstonhaugh and his fellows have a lot of convincing to do before they formally commit to chasing a casino license … if indeed they do. Chalk it up to the cost of doing business. Besides, if Saratoga Casino doesn’t ultimately commit, it will get its million back. (The money pays for background investigations and the like.) Among the imponderables at this point is the required minimum investment. As Featherstonhaugh says, “Anybody who tells you they made a final decision before they know that is not a serious person.”

Neither is anyone who says Iowa can support more casinos. Riverboats were down 5% and racetracks 7% in March, which some marquee names taking it particularly hard. Is Penn National Gaming just phoning it at Argosy Sioux City? Business there took a 14% hit. Ameristar Council Bluffs slid 7% and both casinos performed worse than expected by J.P. Morgan analyst Joseph Greff. By contrast, Caesars Entertainment did fairly well (-3%), grossing $25 million and with a 5% increase at Harrah’s Council Bluffs partly offsetting a 5.5% decline at Horseshoe Casino. Several of the smaller casinos were hit pretty hard, often by double digits, but Riverside Casino Resort, which is trying to stave off new competition managed a 3% gain for the month. One doesn’t know whether to be happy for them or worry that this will lull regulators into complacency that that region can absorb more competition.