What’s Steve Wynn supposedly doing in Atlantic City this weekend and why is he allegedly kicking the tires on casino properties there? Well, it is a buyer’s market and half of Borgata is up for grabs (as would be Trump Marina were it not enmeshed in bankruptcy proceedings). Pinnacle Entertainment‘s got a slew of empty land and if Wynn feels like a trip down memory lane, he could buy out the Atlantic City Hilton from creditors RAC Atlantic City Holdings. After all, he built the place 30 years ago as the Golden Nugget but it’s has been in a deep slide in recent years under the stewardship of Nicholas Ribis and hapless Colony Capital. But one of Wynn’s greatest strengths is that he doesn’t live in the past, so take that into consideration.
Then again, a $1.2 billion equity stake in Revel is suddenly on the market and Wynn could probably pick it up for nickels on the dollar, perhaps as little as $200 million-$400 million. However, where’s the incentive to pick up an unfinished project that is almost two years and $1 billion-1.5 billion from completion (even if promised Chinese venture capital does materialize)? Another, not-inconsiderable X factor is Wynn’s Macao involvement and what sort of squeamishness this might ensue amongst New Jersey regulators, having just given MGM the thumbs-down on its Pansy Ho deal.
Besides, if the New Jersey Legislature signs onto state Sen. James Whelan‘s proposal for “boutique” casinos with 200 hotel rooms, max, then Revel, in its present state, isn’t worth a tinker’s damn. But if Wynn were to relieve MGM Mirage of its half of Borgata, he’d have a turn-key property and little more to do than cash a check every so often. It’s about as close to “free money” as he’s likely to get.
The bigger question (and I’ve received independent confirmation of Roger Gros‘ reportage) is: Why Atlantic City and — especially — why now? Is this alleged sightseeing trip an unsubtle attempt to pressure the Pennsylvania Gaming Control Board into green-lighting Wynn’s Philadelphia project? Or — unlikely as it seems — has Wynn suddenly lost interest in Philly, given its intractable politics? And, if so, can you really blame him?
Either way, being seen sussing out property in Atlantic City, if true, would be a volatile ploy, liable to generate a considerable degree of backlash in Pennsylvania. Donald Trump‘s Philadelphia proposal was ashcanned largely because it was believed he was too invested in Atlantic City and was trying to (pardon my French) cock-block the Philly market. If Wynn’s indeed courting Philadelphia but flirting with the Boardwalk, he risks becoming persona non grata in the City of Brotherly Love. Atlantic City, however, can’t afford to be so persnickety.
Outrageous revisionist history. Look, nobody disagrees that when Phil Ruffin bought Treasure Island it was a mood-elevator for the Strip, an exciting development and a big vote of confidence in Las Vegas. However, to say that since the $775 million deal, Ruffin has “parlayed an antiquated casino property into a modern, relatively recently reinvented resort” isn’t just sycophancy, it’s a preposterous misrepresentation of history. I doubt that few people who patronized Treasure Island in the pre-Ruffin era would describe it as “antiquated,” a term that’s a gross disservice to MGM Mirage and even to Steve Wynn.
Personally, I fail to see how Ruffin’s importation of his beloved mechanical bull from the stinky old New Frontier (ya wanna talk “antiquated”?) equates to a modernization of the Island, as the article claims, but maybe I’m just being obtuse.
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Phil Ruffin was smart (maybe lucky?) not to build the Montreux Hotel and Casino at the New Frontier location. He knew that the Montreux development would cost well over $2 billion dollars to build and he would have to compete against Steve Wynn, Sheldon Adelson, etc. for high end customers. By buying the Treasure Island Phil Ruffin can go after mid-market customers and have a good property at a good location on the Strip. All long as the Treasure Island stays reasonably priced Phil Ruffin should make out alright in the long run.
To me the reference to \parlayed an antiquated casino property \ refers to the Frontier not TI and what he parlayed was his investment in the New Frontier to Treasure Island.
I think you misunderstood the headline (and admittedly, you don’t miss very often)on the Ruffin story. The Frontier, the antiquated hotel, was the first play in the parlay with TI being the second if you don’t count Ruffin’s Wall Street plays while he was out of the Casino business in LV. The article includes kudos for MGM and Kirkorian. I’m not sure where you see any revisionist history in that article.
David, I interpreted the Ruffin story differently. I believe the author was referring to the Frontier as the antiquated property that Ruffin sold and parlayed it into $500 million and ownership of TI.
I think the ‘antiquated casino property’ they were referring to was the Frontier, that in selling it, Ruffin parlayed that into the purchase of the Treasure Island.
You are right about that. In fact, Ruffin has taken a decent, mod-level property and ruined it with his outrageous resort fee. When MGM owned this, we got really good comps. The property was OK, but not outstanding, but a good value for the price. It was not “antiquated”. It has a good location and is easy to get into and out of in a rental car and it is not a 9,000 mile walk to the parking garage. Mr. riffin has done nothing that I can see to upgrade the property to justify the “resort” fee he is now charging, which has priced the place out of the mid-level tier. with Venetian regulary offering 2-4 nights for free (I’ll pay a resort fee on a free room) and Wynn offering $99 per night, TI has priced itself right off of my list of places to stay.
Yes, I must have misconstrued the “antiquated” reference, especially since the New Frontier was nothing if not creaky and decrepit (and it smelled like the world’s largest ashtray). What do you think of Ruffin’s #1 goal at Treasure Island now being to raise room rates? Until visitation markedly improves, it seems to me like he’s putting the cart before the horse.
I don’t think many of the insanely oversaturated upper end properties in Las Vegas will have any choice but to become mid-level. What comes up must come down in this economy.
Anyway, Wynn would be great for Atlantic City but I doubt he can do for the New Jersey what he did for Nevada with the Mirage 20 years ago. AC just lacks a positive, exciting public image — as well as good air service. Since NJ legalized gambling in AC new casinos have sprouted all over the Mid-Atlantic and places like Foxwoods. Atlantic City never developed a reputation for entertainment or hospitality. In the end I bet Wynn ends up in Philly and does something interesting there, despite the politics.
I also feel that Ruffin has ruined the TI. It used to be one of my favorite places to stay and gamble, not any longer. He has changed many of the $.01 slots to $.02 and overall made his slots very tight. His prices are ridiculous and there is little or no service. He has also replaced a number of live tables with Robo dealers. I don’t even bother to go in there anymore except to pass through on the way to the Wynn. What a shame and a waste of a once enjoyable casino and hotel.