Straub still hearts Revel; Setback in Indiana

Glenn Straub‘s abusive/co-dependent relationship with Revel AC continues, even though federal bankruptcy court has driven a stake through his $95 million purchase agreement for the beached whale of a casino. As Judge Gloria Burns, who has presided over the soap opera, put it, “The history of this case is long and tortured.” However, Revel knows that Straub is the only game in town, despite vague talk of ‘interested parties.’ “I would be very surprised if Straub came back and offered $95.4 million and we turned it down,” said Revel attorney Michael Viscount. As though to vindicate Viscount, Straub attorney Stuart Moskowitz said discussions between the two parties were continuing and “We never stopped negotiating. The order doesn’t stop us from negotiating.”

Besides, if someone doesn’t reopen Revel, where’s Ray Rice going to go when he wants to beat a defenseless woman?

* Here’s an idea: If you owe somebody money and they ask for it back, just say no. For good measure, tell them that their claim is “meritless” before you slam down the phone. That’s the
treatment Caesars Entertainment is doling out to its second-tier creditors, who are destined to be stiffed in the casino giant’s bankruptcy proceeding. (Their case pretty much tanked when the Chapter 11 hearings were transferred to a lenient Chicago court.) BOKF N.A. is the latest recipient of Caesars’ cold-shoulder treatment and it looks like it can kiss $750 million goodbye. That’s chump change compared to Caesars’ blowoff of Wilmington Savings Fund Society, out of pocket to the tune of $3.9 billion. Of course, the executives of these bondholders have to shoulder a share of the blame: Investing in the no-margin-for-error Caesars LBO was like playing Russian roulette with five bullets in the cylinder.

* Indiana‘s casino-reform bill, which includes substantial tax cuts, went into cold storage thanks to concerns that the tax reductions were too deep. Speaker of the House Brian Bosma called the elimination of the admissions tax “a little abrupt,” while Indiana Association of Cities & Towns Executive Director Matt Greller characterized the bill as “a catastrophic revenue reduction.” If the House can’t reach a consensus by Wednesday, the bill is dead for the year.

* Legislative action to institute craps, keno and roulette can’t come soon enough for Deadwood. Although table games action rose 28% last month, it came at the expense of slot play, leaving South Dakota with only a 1% revenue increase. Characterizing this as “an ongoing trend,” Deadwood Gaming Association Executive Director Mike Rodman added, “This persistently flat gaming revenue is why Deadwood is working to upgrade its image as a regional gaming resort destination player. The voters of South Dakota recognized the challenges Deadwood is facing by their overwhelming support of Constitutional Amendment Q.” Are lawmakers listening?

* One of the most fascinating episodes in Nevada casino history is the Harvey’s Wagon Wheel casino bombing by half-mad genius John Birges. A new account of the conspiracy, A Thousand Pounds of Dynamite, is a must-read.