An S&G source says Creative Casinos CEO Dan Lee has arranged mezzanine financing and may soon go to the bond market to raise capital, presumably for Mojito Pointe for potentially for ventures elsewhere. The Lake Charles market draws heavy play from Houston‘s Vietnamese-American community, I’m told, and Mojito Pointe manager-to-be MGM Resorts International already has a presence in Vietnam. Lee’s old company, Pinnacle Entertainment is also going into ‘Nam so it would be true to form for Lee to crash Pinnacle’s party … again. Sahara owner Sam Nazarian (left) is also said to be schlepping a $450 million bond offering around, to finance a makeover of Sam’s Place. We hear he’s had trouble finding takers in Los Angeles but, if successful, plans to re-skin the buildings and market the Sahara as an alternative to the Cosmopolitan … although the jury’s still out on the Cosmo’s business model, even at one of the best intersections on the Strip.
International Game Technology continues to remake its image under CEO Patti Hart. CFO Pat Cavanaugh has been ousted in favor of former Walt Disney Imagineering Treasurer John Vandemore. His previous employers include Goldman Sachs — presumably during its pre-casino-owner years. While Mr. Vandemore’s portfolio, which he assumes on Monday, doesn’t involve game content, the significance of the hire is clear. For players (if not for casino executives), slot machines are primarily entertainment. And few companies know more about keeping people entertained — and how to monetize intellectual property — than the Mouse House.
I’ll predict that Disney itself, or some corporate spinoff, gets directly involved in the gaming industry in the 2020’s.
Dave, the MGM resort in Vietnam is actually partially owned by Pinnacle. Ho Tram Strip is being developed by Asia Coast Development (ACD). Pinnacle purchased a major stake in ACD so they now actually own the MGM in Vietnam. MGM contracted with ACD to manage the place prior to Pinnacle buying a big slice of their pie. PNK officials also sit on the ACD board.
What makes this interesting is that now MGM will essentially compete with their flagship in Lake Charles. When I asked a PNK executive what he/she thought about this awkward relationship, they responded: “They are not our partner (in Vietnam), we own the place.” When I asked what that meant for Lake Charles, the response was: “Better than what we had (Dan Lee).”
Interesting.