Big contract from Wynn; Parking debate continues

Wynn Resorts bought locally in its search for a Wynn Everett general contractor. It has let the $1 billion construction contract to Suffolk Construction, biggest in Massachusetts. By choosing a Boston company for this seven-figure deal (plus 4,000 jobs), perhaps Wynn will finally get Beantown Mayor Martin Walsh to quit running his yap about what a raw deal he’s getting from Steve Wynn. The casino company says it conducted a nationwide search for the right builder but surely it is more than coincidence that the prize ultimately went to a local contractor. Said Wynn’s Robert DeSalvio, “Suffolk Construction shares our values and is working with us full speed to meet our ground-breaking target,” having promised to meet the end-of-2018 deadline.

Responded Suffolk CEO John F. Fish, “To me, it is the crown jewel of our portfolio,” being the largest single contract the company has ever won. Fish sealed the deal by flying to Las Vegas to court Wynn personally. The company is no stranger to casinos, having done the (much smaller) Dania Casino & Jai-Alai and California‘s Quechan Casino Resort. The pre-existence of a network of local Suffolk subcontractors also gave the company an edge. Let’s hope the Suffolk signing means that Wynn Everett has turned a corner and can move ahead with all deliberate speed.

* If local TV newscasts are any measurement, Las Vegans are still reeling with shock from MGM Resorts International‘s decision to implement parking fees at all its Strip resorts … including $17 to use valet parking. (Methinks valet parkers will see a dropoff in tips.) In the middle of it was casino apologist and sometime Clark County Commissioner Steve Sisolak, wearing a shit-eating grin and talking about how we should grab our ankles and enjoy the experience. Speak for yourself, Steve. Tourists may bow to the inevitable but locals are certain to balk at the levy — or at least sign up for M life en masse in order to get free parking while they still can. In any event, the issue isn’t going to go away quietly, as today’s KNPR-FM debate between attorney Dayvid Figler and Las Vegas Review-Journal columnist Rick Velotta attests. In the meanwhile, VitalVegas.com has come up with an inspired parody of the whole kerfuffle.

* Gaming & Leisure Properties cleared another hurdle in the anti-trust process, as its purchase of Pinnacle Entertainment got the thumbs-up from the Iowa Racing & Gaming Commission. The deal satisfied the IRGC’s main concern, that it might occlude their ability to regulate the business at the Pinnacle casinos. “We wanted to ensure that through the licensing that even though the operator is going to now be a tenant as opposed to both owning and operating — that we had enough control that we could say we are not happy with the condition, or that we want you to pursue some additional amenities and that that will all fit under the structure of this — particularly under that master lease that we were talking about,” explained Chairman Jeff Lamberti.

Lamberti elaborated that Pinnacle management wouldn’t have to clear routine maintenance with GLPI (a big source of concern regarding casino REITs) and GLPI couldn’t ‘reasonably’ block capex improvements (ditto). With Iowa casino licenses subject to annual renewal, the Hawkeye State has GLPI on a very short leash. Message: Don’t screw it up.

* Pinnacle, in the meantime, is already chafing at the new lines of credit that Missouri allows it to issue. With solid Midwestern conservatism, Missouri politicians wrote the law so that you have to be good for at least $10,000 in order to qualify for casino credit. But how many high rollers does the Show-Me State have? Pinnacle wants that $10,000 minimum substantially reduced. “I can’t speak for other gaming companies, but it is certainly something Pinnacle properties will be pursuing,” said company Vice President of Government Relations & Public Affairs Troy Stremming.

Pinnacle is the top dog in Missouri, owning three of the seven high-grossing casinos that issue credit. Stremming’s argument is that lower lines of credit will improve Pinnacle’s ability to market to its big players from other states, particularly when they’re in St. Louis or Kansas City for a sporting event. The Missouri Gaming Commission is staying neutral, which is perhaps just as well since it hasn’t been tracking the issuance of casino credit. You’d think if this was a really serious issue, it would be driving players back into Illinois, where lines of credit are involved, but such has not been the case.

* Congrats to Lawrence Ho on the opening of his $500 million Tigre
de Cristal casino in Siberia. The first casino in the Primosrky Krai region, it will be joined by others that Global Market Advisors estimates will ramp the area up into a $5 billion/year gaming magnet by 2026. After all, Japan, China and South Korea are all only a short flight away. The opening was marred by the heavy sedation allegedly given to the casino’s mascot, a tiger cub. Congratulations also to Chuckchansi Gold Resort & Casino, open again for business. We feared it would never happen. And it’s good to see local clergy showing support for the casino.

* Ainsworth Technologies has its eyes firmly on the Native American casino industry. It just closed on the $38 million purchase of Nova Technologies, which specializes in Class II gaming machines.