MGM lashes out; Doldrums in Louisiana

It took a while but MGM Resorts International is pushing back against Connecticut‘s attempts to build a satellite version of its tribal casinos, to interdict gamblers who might otherwise play at MGM Grand Springfield. Although he didn’t hint at litigation (yet), MGM spokesman Alan Feldman challenged the constitutionality of the legislative process that brought Mohegan Sun and Foxwoods Resort Casino together. “Last week’s announcement was a continuation of an unconstitutional process that does not allow anyone else to make proposals that could result in greater benefits for the state of Connecticut, its residents and consumers. This is the result of a flawed, closed-door deal that shuts out voters in the approval process, eliminates all competition and doesn’t provide any protections for workers,” Feldman said.

MGM’s sudden access of concern for Connecticut consumers and workers rings more than a bit hollow, considering that its development in western Massachusetts isn’t exactly designed as an economic bonanza for the Constitution State. “Outside interests have made it perfectly clear that their business model depends on taking money and jobs from our state. We’re not going to let that happen without a fight,” said a tribal spokesman. Aforesaid fight takes the form of a $300 million, 2,000-slot, 150-table casino at a location yet to be determined. Let the battle begin.

* Even the absence of Labor Day weekend doesn’t fully explain an 11% falloff in Louisiana casino revenues last month. Add revenues from the Golden Nugget and it softens the blow to a mere -2%. The impact of the Nugget was most powerfully felt in the Lake Charles market, which was -12% without Tilman Fertitta‘s casino and +21.5% with it. Gross gaming revenues in the Shreveport/Bossier City market took a 16% hit, while New Orleans was 8.5% down.

Boomtown New Orleans was the lone bright spot for Pinnacle Entertainment, up 6%. Normally a powerhouse, L’Auberge du Lac was 9% down, while Boomtown Bossier fell 13% and L’Auberge Baton Rouge was flat. It was a rough month for Boyd Gaming, too, down 10.5% in the aggregate. Aboard Treasure Chest, revenues were up 8% but Amelia Belle took on water, down 12%. Sam’s Town Shreveport fell 13.5%, Delta Downs had an 15% stumble and Evangeline Downs was 3% off the pace.

Boyd and Pinnacle may be seeing some of the benefits of New Orleans’ new smoking ban. Harrah’s New Orleans certainly wasn’t, falling 17%. Churchill Downs-owned Fair Grounds racino also suffered, down 9%. Smoking bans don’t explain dismal performances at two other Caesars Entertainment properties: Louisiana Downs, plunging 31%, and Horseshoe Bossier City, which took a 24% dive. I still don’t know the ‘why’ of it but Caesars’ regional properties have performed consistently worse since the bankruptcy.

Nobody in the Shreveport/Bossier City area performed better last month but newbie Margaritaville suffered least, down only 3.5%. Among other operators, Gaming & Leisure Properties saw a 5% dip at Casino Rouge, while Tropicana Entertainment took a 14% hit at neighboring Belle of Baton Rouge. And it was a rough month for Isle of Capri Lake Charles, falling 15%. Even so, the Lake Charles market easily dominated the state, grossing $75 million compared to Shreveport’s $60 million or New Orleans’ $48 million.

* Construction activity has been AWOL at the in-progress [sic] Portofino Resort, in Vicksburg. The casino-to-be has never been lucky, bouncing around from Harrah’s Entertainment to Columbia Sussex to private ownership. The present standstill means that Vicksburg city officials are having to scramble to find alternate bookings for 33 events planned for the city.