Local is beautiful; Adelson loses partner

Motley Fool columnist Travis Hoium says investors are missing a good bet if they overlook Las Vegas locals operators to focus on the big Las Vegas Strip players. He palms-piccites Station Casinos, Boyd Gaming and Penn National Gaming (presumably for M Resort) as good off-Strip investments. “Most people who don’t live in Las Vegas probably don’t realize what a big business the locals market is for gaming companies. In the past 12 months, $2.8 billion has been won by casinos in Clark County that aren’t on the Strip or in downtown Las Vegas. That’s up 5.6% from 2011, which isn’t a lot of growth, but it’s something,” Hoium writes, noting that Station and Boyd are both in the process of enlarging their Vegas Valley presence.

“Smaller bets are a little easier for companies to stomach,” he adds, citing Boyd’s $380 million purchase of Aliante Casino and Station snapping up the Palms for $313 million. The bargain play of them all was M Resort, acquired for a mere $23 million. Combined with the Tropicana Las Vegas, Penn is seeing a 12% return on investment for its Nevada properties — extremely good in an industry where you’re lucky to see 10% ROI these days. Hoium concludes, “off the Strip there are still opportunities for investors, and they may be a better value than their larger competitors.”

* If Sheldon Adelson wants to one-up Steve Wynn, he can point to Forbes magazine’s ranking of him as the 14th-richest American, worth $32 billion. Wynn clocks in far behind, sheldonadelsonat number 246. Adelson’s NFL-stadium project, however, finds itself without a developer, now that Ed Roski‘s Majestic Realty Co. has exited the picture. “As the project matured over the last couple of months, it started becoming more clear that this was likely going to be a family investment or project,” explained Majestic Executive Vice President Craig Cavileer. He described the breakup as cordial. However, it poses another wrinkle for Nevada legislators to consider this week as they meet in special session to consider a tax hike to fund the stadium. On the plus side for Adelson, the Nevada Taxpayers Association has dropped its opposition to the tax increase, taking a neutral stance.

* As she continues to attempt to pry loose her Wynn Resorts stock, Elaine Wynn is now hinting at securities-law violations by the company and requesting whistleblower protection. She’s been very vague as to the particulars and company spokesman Michael Weaver responded, “Our company takes its obligations under all federal laws very seriously and is frustrated when those laws and valid protections are twisted and used to pursue a personal agenda.” Wynn says she is the victim of “Draconian” retaliation for alleged disclosure of company information, particularly details she obtained from Wynn Resorts auditors. Having been rebuffed in district court, Ms. Wynn is taking her case to the Nevada Supreme Court now. As we’ve seen before, Hell hath no fury like a Wynn scorned.

* Bruno Mars has been rumored as a headliner for MGM National Harbor but he’s a lead-pipe cinch to open The Park Theater at Monte Carlo, with a pair of New Year’s Eve concerts, part of a long-term MGM Resorts International pact for the singer. Mars also opened The Chelsea at The Cosmopolitan of Las Vegas, making him Las Vegas’ go-to guy for christening new concert halls.

* Why can’t Nevada regulators tighten anti-money-laundering rules on sports books? Because they’re chronically underfunded. A proposal to increase scrutiny of money in sports books has been sent back to Nevada Gaming Control Board staff “to determine if it would create additional burdens on its tax and audit divisions.” While Silver State legislators are voting to give Sheldon Adelson a big tax handout, they’re still funding gaming regulation at levels that date back to the opening of The Mirage. The casino industry has grown enormously in Nevada and regulation has been unable to keep pace.

* Another significant gaming-industry figure has passed. Ed Doumani, whose accomplishments included co-building the Golden Nugget Atlantic City with Steve Wynn, died on Sept. 28, information that was only disclosed late last week. The former co-owner of the downtown Golden Nugget also built the La Concha and El Morocco on the Strip. Doumani also had a seven-year run as owner of the Tropicana Las Vegas, eventually selling it to Ramada Inns in 1977. “My dad didn’t even have a sign on the door of his office when people would be looking for the chairman of the company at the Tropicana,” said son Lorenzo Doumani. His father’s memorial service will be held at the Neon Museum, aptly enough, since the La Concha lobby serves as the museum’s visitor center.

* Do you miss coin-in slots? The Los Angeles Times tells you where to find them (mostly at Circus Circus, among other MGM properties). You know it’s a good story when Sigma Derby rates a mention, still hanging tough at MGM Grand … at least until they can’t service the machine anymore.

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