Somerville Mayor Joseph Curtatone has apparently thrown in the towel in his opposition to Wynn Boston Harbor, with the consequence that construction will have begun by this time tomorrow. The $2.1 billion project’s endurance is a tribute to Bostonian Steve Wynn‘s patience, having endured shakedown efforts by Boston Mayor Martin Walsh and the ankle-biting of Curtatone, into neither of whose jurisdiction the resort-to-be falls. The only fly in the ointment is that Curtatone is still making veiled threats to sue over the Department of Environmental Protections approval of the Wynn Resorts project. However, Wynn appears to taking a sue-and-be-damned approach, judging by the promptness with which it is putting shovels in the ground. (We agree with Everett Mayor Carlo DeMaria‘s characterization of Curtatone’s grandstanding as “politics at its worst.”)
“Still, Curtatone has described the appeal as a victory,” reports the Boston Herald. “The DEP shortened the [site] license from 85 years to 50 years, and added a requirement that Wynn increase open space.” Wynn himself will skip the start of construction, pleading preoccupation with Wynn Palace in Macao but “sends his regards.” Kind of anticlimactic, huh?
* Despite flat revenues on the Strip, MGM Resorts International mostly exceeded Wall Street‘s expectation for 2Q16. Room revenues were up 3% and MGM predicts a further 7% 
improvement in the next quarter. Cash flow of $681 million handsomely beat a $642 million forecast by J.P. Morgan. MGM even managed to grow cash flow 13% in Macao (partly by dint of tighter table hold), staving off the effects of a 33% decline in VIP revenue and with mass-market winnings down only 3%, instead of the 8% expected. Regional gaming properties also produced pleasant surprises, with Beau Rivage and Gold Strike Tunica helping to lead an 11% cash-flow increase, while the company also managed to shave 8% off corporate expenses. The only ‘miss’ was a $56 million shortfall in Las Vegas Strip expectations, although MGM still managed to tally $1.4 billion. Not putting the preponderance of its eggs in the Macao basket has proven a saving grace for MGM, while other operators must watch the Chinese market with apprehension.
American Gaming Association President Geoff Freeman is really pounding the drum for legalized sports betting during a week spent in Mississippi, celebrating a quarter-century of casino gambling in the Bayou State. Freeman would say he’s merely being reactive, pointing to consumer interest in daily fantasy sports. It begs the question, what’s the difference between that and betting on sports? And why do we have the antiquated models we have?” Freeman said that federal-level bans have “failed miserably” and called for the issue to be revisited at the state level. “If they wish to offer it, tremendous. If they choose not to offer it, that’s OK, too. But let’s give them the decision to make and get this out of Washington.” We agree.
* Penn National Gaming continues to diversify in its search for new revenue streams (Vegas, tribal casinos, slot routes). Its latest move is to plunk down $60 million for San Francisco-based social-gaming developer Rocket Games, creator of Viva Slots Vegas. 
The deal is a bargain, bringing with it 50-plus game titles at a cost that’s a drop in Penn’s $4.7 billion debt bucket. “While future cash flow of social gaming platforms is often difficult to decipher and investor interest in social gaming remains limited, we believe, the avenue for growth is appealing … All things considered, we view the transaction as a net neutral given its relatively small purchase price and future growth potential,” wrote Deutsche Bank analyst Carlo Santarelli.
“Based on our internal analysis, a significant segment of Penn National’s database customers actively participate in social and online gaming,” added Penn CEO Timothy Wilmott. Rocket, which grew revenue 500% in the last two years, brings almost $11 million a year to Penn’s coffers. The company’s boutique-sized operation (30 employees) will remain in Frisco rather than being absorbed into the Penn mothership. As Penn continues to adapt to changing market and demographic conditions the big question is: What next?
* Mohegan Sun has signed a 50-year lease on land near Incheon International Airport, with a view toward building a multi-phase, $5 billion casino megaresort. The initial stage alone will cost $1.6 billion and incorporate a 1,500-slot, 250-table game casino, plus two theme parks. Mohegan Sun is sharing the financial risk with the airport and with KCC Corp., a manufacturer of chemicals — so you might well say Mohegan Sun is the brains of the operation. While it’s an acid test of the viability of casino megaresorts in South Korea, proximity to the airport and its 49 million passengers a year gives it a substantial leg up.
