GAMING INSIDER: New life being breathed into Las Vegas locals gaming market By Howard Stutz, Las Vegas Business Press • May 26, 2014 You know things are on the upswing in the locals gaming market when the two Arizona Charlie’s casinos report a first-quarter net revenue increase. It’s been a while since that happened. It wasn’t a large bump — less than 1 percent credited to increased slot machine revenue, hotel occupancy and restaurant sales — but with the results coming just a few days after Station Casinos’ best … [Read more...]
INSIDE GAMING: Beware gaming equipment investing By Howard Stutz, Las Vegas Review-Journal • May 25, 2014 Save for a few small companies, Wall Street has thrown in the towel on slot machine manufacturers for 2014. Without new hotel-casino openings (other than The Cromwell and SLS Las Vegas) and a slot machine replacement market that analysts term “nonexistent,” the investment community has been advised to view the gaming equipment sector with caution. Janney Capital Markets gaming analyst Brian … [Read more...]
The AGA iGaming turnabout story – old news meets questionable assumptions By Jeffrey Compton • May 23, 2014 Last Wednesday the following story appeared in the Wall Street Journal: Online Gambling Suffers Setback - American Gaming Association Withdraws Support, Citing Differences of Opinion. During a WSJ interview (at G2E Asia) Geoff Freeman, president and CEO of the AGA, said that the group can no longer support online poker legalization due to disagreements among their membership and the entire … [Read more...]
In Troubling Times, Casinos Are Looking For A Little Relief By Ken Adams • May 22, 2014 There has not been much good news for the casino industry lately and sometimes even the good news is not really good. For example, two jurisdictions reported an increase in gaming revenues in April. Atlantic City reported an increase in revenue for the first time in years. The casinos in Atlantic City once again reported less revenue for the month, but when the online gaming revenue is added in, … [Read more...]
Little Wonder Why Terry Fator Is Successful By Christopher G. Axelrod • May 22, 2014 Based on his many well placed billboards, cab backs, and overall positive reputation I was driven by marketing bombardment to finally watch the Terry Fator Voice of Entertainment show at the Mirage. The 7:30 show is presented four to five nights weekly in the elegantly appointed 15 million dollar Danny Gans theatre and remains an appropriate tribute to the late Danny Gans as both careers are based … [Read more...]
For revitalizing cities it’s the gaming – and a lot more By Howard Stutz, Las Vegas Review-Journal • May 21, 2014 Chad Barnhill carefully maneuvered visitors through an active construction site Monday that is quickly becoming the $442 million Horseshoe Casino Baltimore. He paused in front of floor-to-ceiling windows on the second floor. In clear view was M&T Bank Stadium, home of the National Football League’s Baltimore Ravens, seemingly as close as a couple of Joe Flacco passes. The windows open … [Read more...]
INSIDE GAMING: Revival not fueled by gaming By Howard Stutz, Las Vegas Review-Journal • May 18, 2014 Just as the recession began to grip Las Vegas in 2008, gaming executive Terry Lanni made a prediction. During an interview at his offices in the Bellagio, Lanni said a Las Vegas market recovery was not going to be like any other time tourism and gaming businesses experienced a downturn. After the terrorist attacks of Sept. 11, 2001, it took 18 to 24 months for tourists to get comfortable … [Read more...]
AGA’s G2E Asia Brings Global Industry Together By Geoff Freeman, President and CEO, American Gaming Association • May 17, 2014 AGA’s upcoming event G2E Asia, held in partnership with Reed Exhibitions, has grown rapidly in just the past few years, mirroring the growth of the Asian gaming market. AGA is proud of the value that this show provides to gaming professionals by facilitating connections and building a better understanding between United States and Asian gaming professionals. The 6,500 anticipated attendees to … [Read more...]
The Beatles Continue to “Hold Your Hand” and Touch Your Wallet By Christopher G. Axelrod • May 16, 2014 The Beatles broke up in 1970. Only two of the original band members are still living, and occasionally recording and touring. The band is considered to be a 1960's phenomenon, yet its music and personalities enjoy widespread, loyal fan support today. So perhaps it’s not surprising that there are two successful, yet quite different, Beatles-related productions in Las Vegas. Cirque du Soleil's … [Read more...]
Don’t bet against more growth in Macau gaming By Howard Stutz, Las Vegas Review-Journal • May 14, 2014 Anytime the investment community gets downwind of a potential hiccup in the Macau gaming market, a slash-and-burn mentality sets in. The victims are often MGM Resorts International, Las Vegas Sands Corp. and Wynn Resorts Ltd. The Las Vegas-based companies have subsidiaries listed on the Hong Kong Stock Exchange and those stock prices usually take a beating. Sometimes, the companies’ share … [Read more...]
The Circus Has Returned to Massachusetts By Ken Adams • May 13, 2014 A week or two ago, it seemed as if Massachusetts had settled down and the casino licensing process was becoming something close to normal. But last week, the Massachusetts process erupted into a circus-like atmosphere. A circus is probably a politically incorrect metaphor after nine performers in the Ringling Brothers and Barnum & Bailey Circus were injured in an accident in Providence, Rhode … [Read more...]
New feel, new story as The Hotel becomes Delano By Howard Stutz, Las Vegas Business Press • May 12, 2014 When MGM Resorts International announced plans in 2013 to rebrand The Hotel into Delano Las Vegas, company officials said the 11-year-old property would be given a new look from top to bottom. Details of the $80 million renovation were announced in late April and when the project is completed by September, nearly every square foot of public space inside the 1,100-room nongaming hotel will be … [Read more...]
Intrade revival set to test boundaries of UIGEA fantasy sports exemption By Aaron Stanley • May 12, 2014 Where exactly is the line between sports gambling and fantasy sports contests? While it must exist, no one seems to be able to pin it down. Last week, Intrade, a popular but controversial website that formerly offered wagering on everything from presidential elections to weather, re-emerged in a new, beta version. Now it is a US-based sports wagering site, and the distinction between sports … [Read more...]
INSIDE GAMING: Weight of debt won’t go away By Howard Stutz, Las Vegas Review-Journal • May 11, 2014 The investment community long has expressed concern over the growing debt that weighs down many casino companies, most notably the $21 billion anchor around the neck of Caesars Entertainment Corp. Deutsche Bank gaming analyst Andrew Zarnett in April told investors that Caesars might have to sell or close properties to get out from under its obligations. He included $1.04 billion in debt that … [Read more...]
Is Blackjack an Endangered Species? By Ken Adams • May 7, 2014 Blackjack, as a casino game, is an endangered species to my way of thinking. Not everyone will agree with me, but they will agree that blackjack has had a bad week. On April 29, a very high profile Hollywood actor was asked to leave a blackjack table at the Las Vegas Hard Rock. The pit boss told the actor, Ben Affleck he was too good and he would not be allowed to play blackjack at the Hard Rock. … [Read more...]
INSIDE GAMING: A new era in Las Vegas history set to open By Howard Stutz, Las Vegas Review-Journal • May 7, 2014 The next phase of Las Vegas starts today in, of all places, the Sawyer Building. Nearly a dozen representatives and executives from Genting Berhad, the Malaysia-based company that acquired the unfinished Echelon project on the Strip for $350 million 14 months ago, will face questions from the Gaming Control Board. The corporation and several of its entities seek a finding of suitability from … [Read more...]
Bitcoin boom spreads to Las Vegas brick-and-mortar businesses By David Ferrara, Las Vegas Business Press • May 5, 2014 Should an economic collapse ever ruin the U.S. dollar, you could still shop for your cataclysmic needs at the Zombie Apocalypse Store. Behind the door protected by wrought-iron bars and near a couple of machetes, black and orange signs read: “Bitcoin accepted here.” Monko decided to start dealing in Bitcoin about six months ago. He said he’s constantly mixing things up at the store. “I … [Read more...]
Gaming Insider: Sorry, IGT, just like McKayla, investors aren’t impressed By Howard Stutz, Las Vegas Business Press • May 5, 2014 Remember the photo from the 2012 Summer Olympics of U.S. gymnast McKayla Maroney, standing on the medal podium after taking silver in the vault finals, arms crossed, lips pursed to the side, with a look of disappointment? The image became a viral Internet sensation known as “McKayla is not impressed.” The investment community might give giant International Game Technology the same disdainful … [Read more...]
What’s Russian for ‘Sin City?’ By Howard Stutz, Las Vegas Review-Journal • May 4, 2014 Somehow, “What happens in Crimea, stays in Crimea,” doesn’t seem like an appropriate catchphrase. In April, a month after Russia forcibly annexed the Black Sea peninsula away from Ukraine, President Valdimir Putin said he wants to turn the territory into his own version of Las Vegas. He wasn’t talking about replacing “Thunder From Down Under” with the “Shirtless Putin Dancers.” Putin … [Read more...]
Amid dispute, Station considered buying Dotty’s By Steve Sebelius, Las Vegas Review-Journal • May 2, 2014 Neighborhood gambling giant Station Casinos hasn’t been shy about criticizing the Dotty’s chain. According to Station, Dotty’s doesn’t follow the law, blurs the lines between regular casinos and taverns and preys on legitimate gambling businesses. So it might come as a bit of a surprise to learn that Station Casinos allegedly tried to purchase Dotty’s. According to Susan Johnson, general … [Read more...]
The El Cortez is well positioned to attract Millennials (and yes, you did read that right!) By Christopher G. Axelrod • May 1, 2014 Last week I had dinner with CDC Publisher Jeffrey Compton at the flagship restaurant at the El Cortez called Flame. (Note - Jeff has had a long-time professional relationship with the El Cortez.) I had never been to the El Cortez, but always admired its location and legacy. During our dinner Jeff mentioned that though the property is well-maintained and doing well, he was concerned that it, as … [Read more...]
Before and After Cell Phones: A Generational Disconnect Forcing Change By Ken Adams • April 30, 2014 Everything is constantly changing. Business, like all aspects of society, is dynamic and in a constant state of flux. The problem is not to understand change, but to anticipate the nature of the change. It is no secret that I believe the casino industry is at a critical juncture, a tipping point. To survive and remain viable the industry will have to change, re-engineer its business model and … [Read more...]
Venitian, Palazzo barely an afterthought with Macau in the mix By Howard Stutz, Las Vegas Review-Journal • April 30, 2014 There is a reason analysts spent about 40 minutes questioning Las Vegas Sands Corp. officials last week about the company’s over-the-top results in Macau. It has to do with Confucius. During a conference call to discuss Las Vegas Sands’ first-quarter earnings — net income of $776.2 million on a single-quarter record of $4.01 billion in revenue — analysts didn’t ask a single question about … [Read more...]
What Is A Casino To Do When The Gamblers Stop Coming? By Ken Adams • April 28, 2014 In every gaming jurisdiction experiencing a long-term decline in revenues, casinos are being forced to cut expenses and restructure. The way a casino approaches the problem differs according to the management, location and conditions that created the problem, but there are some commonalities. Generally, the first order of business in a downturn is to cut all “non-essential” expenses, reduce staff … [Read more...]
Is Phil Ivey a Cheater or an Advantage Player? By Eliot Jacobson, Ph.D. • April 28, 2014 About two weeks ago a news tornado blew through the casinosphere, when the Borgata Casino filed a federal suit against Phil Ivey, seeking to recoup $9.6 million that Ivey won playing baccarat in 2012. In case you don’t know the name, Phil Ivey, the number one rated poker player in the world, is sometimes called the “Tiger Woods” of poker. He has won nine World Series of Poker bracelets. Now Ivey … [Read more...]
If The Recession Is Over, Where Are The Gamblers? By • April 23, 2014 By now, everyone has read the stories of gaming communities struggling under the weight of the Great Recession and increased competition. The economy is improving, so gaming’s struggles must be related to competition, right? Economic downturns affect every business, but they pass and things get better. The impact of added competition is usually worse and longer lasting. The impact of … [Read more...]
INSIDE GAMING: Return on investment for Internet gaming operations in three states no windfall By Howard Stutz, Las Vegas Review-Journal • April 23, 2014 Apparently, the only folks making money from the U.S.’s fledgling Internet gaming market are lobbyists. That won’t change anytime soon. Bills for and against Internet gaming continue to surface in statehouses and Congress, which means more billable hours for the lobbying sector. So far, the return on investment for casino operators that have launched Internet gaming operations in three … [Read more...]
Casino bill must include Chicago – and safeguards By Editorial, Chicago Sun-Times • April 22, 2014 Haggling over legislation to bring a casino to Chicago has become a springtime ritual. This time around, state Rep. Bob Rita, D-Blue Island, has dealt out two new amendments that just might get the job done. To our way of thinking, that's welcome news, but only if the talks in Springfield have no influence on City Hall's continued efforts to sharply reduce costs, especially the costs of … [Read more...]
INSIDE GAMING: Casino industry wrestles with issues surrounding medical marijuana By Howard Stutz, Las Vegas Review-Journal • April 20, 2014 Like much of Nevada, the casino industry is grappling with issues surrounding medical marijuana. So much so that gaming companies and regulators have had little to say publicly about doctor-prescribed pot. Medical marijuana has been legal in Nevada since 2000, but it took state lawmakers 14 years to allow dispensaries to operate. Now, with a state law in place calling for up to 66 potential … [Read more...]
A Tale of Two States and Two Lines of Thought By Ken Adams • April 17, 2014 In Chicago, Illinois on April 16th, the state gaming commission held a hearing on two proposed casino expansion bills. One would allow for an additional casino in Chicago with up to 10,000 gaming positions; the other bill proposal would authorize five more casinos in the state, including one in Chicago and slot machines at racetracks. Casino expansion comes up in the legislature every year in … [Read more...]
Celebrity magician Murray Sawchuck reveals the Magic of Advertising By Christopher G. Axelrod • April 17, 2014 Celebrity magician Murray Sawchuck has been performing for the past two years at the Laugh Factory in the Tropicana. On a recent weekday, I attended his 4:00 p.m. show. I was perplexed that this well-branded and known talent only had an audience of 28 for a show in a venue with a capacity of 250. Sawchuck's 55-minute show was energetic, fast paced, and over-the-top with improv humor, audience … [Read more...]
AGA Affirms Value of Gaming in Response to Massachusetts AG Candidate By Geoff Freeman, President and CEO, American Gaming Association • April 16, 2014 Gaming industry set to create thousands of jobs, help small businesses and support public services in the Commonwealth. Washington — American Gaming Association President and CEO Geoff Freeman issued the following statement after Massachusetts Attorney General candidate Maura Healey announced her opposition to casinos in the Commonwealth based on outdated myths: “Ms. Healey's comments … [Read more...]
Dead end for Alabama — Attorney general’s fight against Poarch Creeks failed, as expected By The Anniston Star Editorial Board • April 15, 2014 "Big Luther," Alabama's hyper-ambitious Attorney General Luther Strange, had been warned more than once. This page warned him. Other commentators warned him. If he had bothered to ask, members of the Alabama Bar Association most assuredly would have warned him, too. Nevertheless, Strange went to court to challenge the right of the Poarch Band of Creek Indians to operate their casinos on tribal … [Read more...]
After new law, 2016 political conventions more beholden to wealthy donors By Aaron Stanley • April 15, 2014 While the Supreme Court’s decision to strike down limits on individual political donors captured the headlines last Wednesday, a new law signed by President Obama on the next day will also increase the political system’s reliance on wealthy donors. Known as the Gabriella Miller Kids First Research Act, the new law will provide increased funding for childhood disease research. In a rare sign of … [Read more...]
Merger ushers in leadership shuffle for WMS Industries By Howard Stutz, Las Vegas Business Press • April 14, 2014 The ink was hardly dry on lottery giant Scientific Games Corp.’s $1.5 billion buyout of slot machine manufacturer WMS Industries when the corporate management team was shaken up with a new CEO and chairman in November. Earlier this month, Scientific Games moved WMS’ longtime chief financial officer into the same role with the parent company. An even larger transition could come later this … [Read more...]
Regional gaming operators hope winter’s thaw will nurture warmer financial figures By Howard Stutz, Las Vegas Review-Journal • April 13, 2014 Winter’s long grip on the Midwest and other parts of the U.S. is finally subsiding. But even as the snow melts, regional gaming operators might have to wait for their bottom lines to warm up. Weather issues kept casino patrons at home in several states where companies such as Penn National Gaming, Isle of Capri Casinos, Pinnacle Entertainment and Boyd Gaming Corp. derive the bulk of their … [Read more...]
Tell Congress to Fight Frivolous, Costly Litigation By Geoff Freeman, President and CEO, American Gaming Association • April 10, 2014 Gaming Industry Colleague: AGA continues its ongoing efforts to call for Congress to pass meaningful patent reform legislation to curb abuses asserted by patent trolls. Patent trolls are a hindrance to American businesses, including the gaming industry, that make our nation's economy thrive. We encourage you to join us in this effort to push for meaningful reform — using easy-to-use … [Read more...]
Donnie and Marie: The Stay Power of the Classic Las Vegas Show By Christopher G. Axelrod • April 9, 2014 I recently attended the Donnie and Marie Show at the Flamingo Showroom with the understanding that they were soon taking some time off to allow for Olivia Newton John to begin her new "Summer Nights" show. Was it perhaps that Donnie and Marie Show ticket sales were in a decline as their market appeal to the fifty and older crowd was finally thinning and competitive entertainment options were … [Read more...]
INSIDE GAMING: Casinos shudder over possible federal requirement to divulge source of high rollers’ gambling funds By Howard Stutz, Las Vegas Review-Journal • April 8, 2014 Word that the U.S. Treasury Department may soon require the casino industry to report the source of gambling funds used by their big spending high-rollers sent a few shock waves through corporate offices. It wasn’t so much a rumble as it was a magnitude 7.0 earthquake. The move is part of a stepped-up effort by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to crack … [Read more...]
The Risky Business of Loss Rebates By Eliot Jacobson, Ph.D. • April 7, 2014 In early 2011, Don Johnson won more than $15 million playing blackjack at Atlantic City. Before he began, he negotiated a number of perks that moved the edge squarely to his side. The most valuable was a 20% rebate on his losses whenever he lost more than $500,000 in a day. These loss rebates had no minimum play requirement and reset after each day’s play. Johnson’s optimal winning strategy is … [Read more...]
Nightclubs looking for the next big thing to keep record-setting crowds coming By Laura Carroll, Las Vegas Business Press • April 7, 2014 The next big thing is coming, Las Vegas. At least, that’s what nightlife guru Jon Taffer said while getting ready for his annual Nightclub & Bar Show to open in late March. During an interview with the Las Vegas Business Press, Taffer noted that nightlife operator Jesse Waits said that he has come up with the next big idea — he just has to implement it. As co-owner and managing partner … [Read more...]
Fluttering in the British Isles By Ken Adams • April 6, 2014 Gambling in England is not like it is in the United States. American gaming is governed by individual states and not by federal regulation, while gambling in England is regulated by the national government. And because of the difference, gambling in England is much more uniform than it is here. In the U.S., regulations are different in every state. Tax rates vary by state as does the size and … [Read more...]
Tribe’s Talking Stick Resort wields powerful economic clout By Howard Stutz, Las Vegas Review-Journal • April 6, 2014 The Salt River-Pima Indian Community has a real estate footprint in this city, 20 minutes east of downtown Phoenix, that makes the 67-acre CityCenter look like a strip mall. The tribe has built a “cultural and entertainment destination.” There is the 36-hole Talking Stick Golf Club, which was designed by noted golf course architects Bill Coore and Ben Crenshaw. On the opposite side of the … [Read more...]
What Has Sheldon wrought? By Jeffrey Compton • April 2, 2014 While working on the Flash last Tuesday morning, I came upon the opinion piece “Las Vegas made a big, bad bet on casinos” – one of the nastiest anti-Las Vegas (and anti-gaming) commentaries I have read in a very long time. Written by prominent conservative columnist David Frum for the very prominent news website CNN.com, this over-wrought piece says that Las Vegas will never return to its boomtown … [Read more...]
The Casino Industry’s Worst Nightmare – the Feds By Ken Adams • March 31, 2014 Over the course of my career, I have watched the casino industry fight and lose more than one battle with the federal government. The first battle I remember was over silver dollars; it hardly seems believable today, but at one time silver dollars were in circulation in Nevada and they were popular. In fact, they were very popular – especially with dollar slot players. Somehow winning a bunch of … [Read more...]
As megaresort trend fades, companies focus on luxury in ‘small’ settings By Howard Stutz, Las Vegas Business Press • March 31, 2014 Las Vegas is getting smaller. That is, if you call 1,600-room and 1,100-room Strip hotels “boutique” properties. By the end of the year, Las Vegas will have about a half-dozen hotel-casinos that operators classify as “boutique,” “luxury” or “lifestyle” in their marketing efforts. It’s actually not a unique concept. The Hard Rock and The Palms, for example, began as smaller … [Read more...]
Nightclub and Bar Convention and Trade Show leaves one Shaken and Stirred By Christopher G. Axelrod • March 31, 2014 The 29th Annual Nightclub and Bar Convention and Trade Show poured it on in style at the Las Vegas Convention Center. There was something for every interest and beyond. Jon Taffer, Executive Producer and Star of Spike TV's popular show "Bar Rescue" along with his team served up an event that would appeal to the record breaking 41,000 attendees and to most anyone else who patronizes clubs and bars. … [Read more...]
INSIDE GAMING: Internet gaming giant tries again By Howard Stutz, Las Vegas Review-Journal • March 30, 2014 ou have to hand it to online gaming giant PokerStars. Despite setback after setback, the Europe-based company won’t give up on its quixotic quest to break into the fledgling U.S. Internet gaming market. After failing in Nevada and New Jersey, the new target is California. But odds are PokerStars is once again drawing dead. The company, operated by the Isle of Man-based Rational Group, … [Read more...]
Ohio Casino Education Funds: Easy Money That’s More Than Zero By Jeffrey Compton • March 26, 2014 Over the past month I have been reading negative articles about Ohio casinos, specifically about the distribution of casino tax dollars to local school systems. Counting on casino revenue? Local governments told it’s risky Casinos fall short of vows to voters How much casino money do schools receive? To believe these reports, the checks are nowhere near what the school systems expected, … [Read more...]
Massachusetts: Ensuring the Nation’s “Best” and Most Rigorous Regulations By Ken Adams • March 26, 2014 Massachusetts came late to the gambling game. Actually, Massachusetts is not quite there yet; it is still in the process of getting into the game. The fact that Massachusetts is so late entering into casino gaming might lead one to think the process in the Bay State would be easier than in other states. After all, Massachusetts has the benefit of the experience of thirty-eight states with casinos … [Read more...]
Analysts wary of market-share erosion for slot maker IGT By Howard Stutz, Las Vegas Business Press • March 24, 2014 There is a target on the back of slot machine manufacturer International Game Technology. Despite first-quarter results that were well received by investors, at least two analysts raised concerns in recent weeks that IGT could be bleeding away slot machine market share to the competition. Credit Suisse gaming analyst Joel Simkins said IGT’s stock price — which has fallen 28 percent since its … [Read more...]
Are Casino Comps a Dying Breed? By Jean Scott • March 23, 2014 Back in 1995, the news crew of 48 Hours followed Brad and me around Las Vegas, filming as we played video poker and reaped comps. On the air, Dan Rather dubbed me the “Queen of Comps”. By then I had been honing my comp skills for more than ten years. After retirement, Brad and I stayed in comped casino hotel rooms in Las Vegas for months at a time. Our low-roller play on quarter video poker not … [Read more...]
INSIDE GAMING: Fattest fines have come in a flurry By Howard Stutz, Las Vegas Review-Journal • March 23, 2014 Million-dollar fines for violating Nevada gaming law used to be rare. But in the past 15 months, state casino regulators have accepted three separate seven-figure payments from gaming companies to settle Gaming Control Board disciplinary complaints. That’s the same number of seven-figure fines the state had issued in all of the previous 28 years. Regulators in December and again last week … [Read more...]
Does Gaming have an Older Audience or an Aging Audience? By Jeffrey Compton • March 20, 2014 Last week I ended my column on senior gaming with “I do admit to being concerned that nearly half the casino visitors in 2012 are over age 50. I’m not concerned for the visitors, but for the casinos and the industry as a whole. That concern is not over compulsive gambling, but about the aging audience – but that is a subject for another column or more.” At the time I did not intend to … [Read more...]
Making Up a Story Helps Make Sense of The Confusion By Ken Adams • March 19, 2014 It is never easy to understand a complicated issue and the gaming industry in the 21st century has certainly become complicated and confusing, at least for me. To help myself understand gaming and other things I put Adams Daily Report events into narratives. Looking at the news every day, I develop narratives in my mind about the day’s news. Sometimes I extend a narrative past one day and make … [Read more...]
Revenue from Macau casinos enriches industry’s billionaires By Howard Stutz, Las Vegas Business Press • March 17, 2014 It’s been eight years since Macau surpassed the Strip in annual gaming revenue. So it makes sense that the region — the only location in China with casinos — is creating more gaming industry billionaires than Las Vegas. The recently released Forbes 2014 List of the World’s Billionaires shows a large proportion of the wealthy who cite gambling, gaming or casinos as the source of their income … [Read more...]
Loyalty, love for Jackie By John L. Smith, Las Vegas Review-Journal • March 16, 2014 New visitors to the El Cortez some years ago would have been forgiven for failing to spot the owner of the downtown casino. He wasn’t a fresh-faced CEO or a consummate corporate type with an MBA. On the contrary. He was the affable old fellow in the loud sport coat who moved through the slot bays picking up cocktail glasses and emptying ashtrays while keeping up a playful patter with customers … [Read more...]
INSIDE GAMING: Boyd deal sparks torrent of speculation By Howard Stutz, Las Vegas Review-Journal • March 16, 2014 A New York-based hedge fund acquired a 5 percent ownership stake in Boyd Gaming Corp. last week and immediately fueled rampant speculation in the investment community. Scenarios ranged from a corporate takeover to moving the company’s casinos into a real estate investment trust. Don’t expect a quick resolution. Elliott Associates, controlled by financier Paul Singer, said in a Securities … [Read more...]
Exploring (and Exploding) the Senior Citizen Gambling Myth with Aunt Dorothy By Jeffrey Compton • March 13, 2014 Earlier this week the Concord Monitor ran a column by Paul Davis, an anti-gaming advocate at the Institute for American Values, entitled “My turn: Casinos prey on elderly residents”. The column discussed an elderly New Hampshire widow who moved to Arizona in 2004 and, over the course of eight years, gambled away a considerable amount of money (for her) at a local casino. Her family members were … [Read more...]
US online gaming ban dispute hits the entertainment industry By Aaron Stanley • March 12, 2014 Holders of music, film and television copyrights are on the verge of becoming victims of US prohibitions on online play. After a decade-long trade dispute over remote online gaming, the small Caribbean nation of Antigua and Barbuda is now planning the lawful taking of $21 million of US entertainment industry intellectual property per year. This development results from a complaint filed by … [Read more...]
Beacher’s Madhouse (MGM Grand): Too much of a Madhouse By Christopher G. Axelrod • March 9, 2014 Since their public opening at the MGM Grand Resort and Casino early last January I had been reading and hearing a variety of reviews about Jeff Beacher's Madhouse so I finally decided to purchase my general admission ticket online and experience this unique entertainment option. They have years of a successful run under the identical theme and branding at the Roosevelt Hotel in Hollywood and is … [Read more...]
INSIDE GAMING: Caesars’ moves don’t ease Street’s debt worries By Howard Stutz, Las Vegas Review-Journal • March 8, 2014 Nothing is simple when it comes to Caesars Entertainment Corp. Take last week’s announcement that the company is selling four casinos to its Caesars Growth Partners subsidiary for $2.2 billion. Some analysts worried the deal would diminish the parent company’s results. Caesars is giving up valuable revenue and cash flow from three Strip casinos and Harrah’s New Orleans to a subsidiary in … [Read more...]
Indian Gaming: A Tale of Treaties and Time By Ken Adams • March 6, 2014 Indian gaming is twenty-six years old and for all of that time, its existence has been contentious. That is not surprising as the entire history of Indian tribes with the federal and state governments has been contentious. Popular myth tells of the first pilgrims stranded alone, hungry and cold in an alien land where they found help and friendship in the local Indian tribes. It was a short and … [Read more...]
AGA’s Engagement with FinCEN By Geoff Freeman, President and CEO of the American Gaming Association • March 5, 2014 The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), as many of you are aware, has increased its interest in the gaming industry's compliance with federal anti-money laundering laws, which ensure the integrity of gaming and keep illicit funds out of our nation's casinos. A working group of AGA members and staff met with FinCEN last week to discuss the group’s … [Read more...]
The Lion’s Share: A Grand Ghost Goes Extinct By Ken Adams • March 3, 2014 In 1994, one evening and late into the night during the annual gaming show, I was walking the floor of the MGM Grand. I was tired and wanted to go to bed, but could not resist exploring just one more casino. Every year, those walkabouts were one of the most important aspects of attending the gaming trade show, not just for me but for all attendees. Everyone went out scouring casinos, hoping to … [Read more...]
Big rewards in China create flexibility for MGM Resorts By Howard Stutz, Las Vegas Business Press • March 3, 2014 MGM Resorts International is showing investors what a 51 percent ownership stake in its publicly traded Chinese subsidiary means financially to the casino operator’s business back home. At least $320 million this month alone. The figure is MGM Resorts’ share of some $628 million in quarterly and special dividends that MGM China will award to shareholders this month. The business, traded on … [Read more...]
INSIDE GAMING: Latest push for casino expansion in Florida brings little reaction from gaming interests By Howard Stutz, Las Vegas Review-Journal • March 2, 2014 Florida is back in play, but no one really seems to care. Last month, legislation was unveiled that could bring Las Vegas-style casinos to South Florida — one each for Miami-Dade and Broward counties. Local voters in both communities would have to approve the resorts through referendums. The legislation would allow racetracks outside current South Florida racinos to add slot machines and … [Read more...]
Steve Wynn or Mohegan Sun in Massachusetts? By Ken Adams • February 28, 2014 On February 25th, voters in Revere approved Mohegan Sun’s plan to build a $1.3 billion resort at Suffolk Downs. Voter approval is one of the most important steps in the Massachusetts casino license process and this vote is particularly important. If Mohegan/Suffolk wins a license it will be in essence the Boston casino license. It will be the most lucrative of the three casino and one slots-only … [Read more...]
Mt. Gox Meltdown Speeds Day When Bitcoin Will Die By Megan McArdle, Bloomberg View • February 25, 2014 (Bloomberg) -- The first thing to point out about the meltdown of the Mt. Gox Bitcoin exchange is that this is hardly the first time that massive amounts of currency have been stolen, or that a financial firm has shut down and left its depositors with basically nothing. This is not somehow unique to Bitcoin, or a fatal flaw in its design. The second thing to point out about the meltdown of the … [Read more...]
The story of pari-mutuel betting in the US: Saving horse racing By Artur Loss • February 24, 2014 The run-up to the Kentucky Derby 2014, which is on the 4th of May this year, began on Saturday the 2nd of February with the Risen Star Stakes at Fair Grounds in New Orleans and the Fountain of Youth Stakes at Gulfstream Park in Florida. Kentucky Derby is still a big event attracting large crowds every year, which has no problems selling out tickets for the big day. However, in recent years horse … [Read more...]
Prohibition not the right answer for online gaming By David G. Schwartz, Special to the Las Vegas Review-Journal • February 24, 2014 The nation faces a dangerously seductive form of gambling, as cross-border, high tech telecommunications networks threaten to siphon money out of homes across the country. The problem is getting worse, and the states, with the constitutional mandate to regulate gambling within their borders, are indifferent or worse. The only solution is for Congress to act now. It took years, but Congress … [Read more...]
Online Gaming: Lots of raving, but little revenue By Howard Stutz, Las Vegas Review-Journal • February 23, 2014 Lost in the heated rhetoric over the expansion of Internet gaming is a harsh reality. Legal online wagering has not been the financial windfall many analysts predicted. Initial returns from the three states that enacted Internet gambling laws are not overflowing the balance sheet. New Jersey’s online revenue is a letdown. Delaware’s figures are inconsequential. Nevada won’t break out … [Read more...]
Is the Internet Ready for Casino Gambling? An alternative view! By Jeffrey Compton • February 20, 2014 In his recent commentary Is the Internet Ready for Casino Gambling?, my colleague Ken Adams discussed the recent history of Internet Gaming. He also discussed recent incidents of Internet hacking, primarily to the Las Vegas Sands website but also to several companies in other industries. He concluded that “the casino industry might be ready for the internet, but the internet is not yet ready for … [Read more...]
Is the Internet Ready for Casino Gambling? By Ken Adams • February 19, 2014 The internet gambling story gets more interesting by the day. For the last few years, internet gambling has been mostly a side story. It was important, but not a dynamic story; not much happened from day to day or even month to month. The story started to gain momentum in December of 2011 when the Department of Justice issued an opinion on the Wire Act that opened the door for individual states … [Read more...]
The AGA 2014 Strategic Plan: Addressing Criticisms, Belaying Myths, and Creating a Positive Roadmap By Jeffrey Compton • February 17, 2014 I heard from many people after my recent column, “The Internet Gaming War: A Pox (Mostly) on One House”, including Geoff Freeman, president and CEO of the American Gaming Association, who was criticized in the piece. “I largely agree” emailed Freeman. In the ensuing discussion regarding various AGA issues, I asked “Is internet gaming the only note the AGA is going to play this year?” Freeman’s … [Read more...]
The Las Vegas Sands Website Attack – Random Thoughts and Definite Plans By Jeffrey Compton • February 16, 2014 As I write this column the Las Vegas Sands website has been down for six days. Over those days a plethora of ideas has gone through my head – plus some decisions about emergency planning for my very small business. Who did this and why? I know little about website hacking, so I started my questioning with my own technical director (Cory Roberts) and web designer (Jill Merk), and went from … [Read more...]
Inside Gaming: Scorn troopers sow fear of Net bets By Howard Stutz, Las Vegas Review-Journal • February 16, 2014 If there’s one thing we learned from last week’s telephone press conference by the Coalition to Stop Internet Gambling it’s that all five speakers “were honored” to be on the 45-minute call. They said so, several times. That, and Internet gambling is responsible for every ill known to mankind. The paid representatives for the Washington, D.C.-based coalition — funded by Las Vegas Sands … [Read more...]
Jeff Civillico Comedy In Action – The Quad, Las Vegas By Christopher G. Axelrod • February 13, 2014 Publishers note: We have received several requests that CDC Gaming Reports carry more casino entertainment-related commentary. As neither Ken Adams nor I live in Las Vegas (nor are either of us really qualified), I asked Chris Axelrod, a long-time friend with a solid entertainment background, to contribute his thoughts on various Las Vegas shows (big-and-small, new-or-old, on-and-off the … [Read more...]
Atlantic City Finally Got Some Good News By Ken Adams • February 12, 2014 It has been a really cold winter this year and the weather is affecting gaming revenues all over the country. Pennsylvania, Ohio, Missouri, New York and Indiana all reported lower year-over-year gaming revenues in January and each blamed the cold weather for the decline. But no one mentioned the weather when reporting Atlantic City’s gaming revenues for January. The Atlantic City story for … [Read more...]
The Internet Gaming War: A Pox (Mostly) on One House By Jeffrey Compton • February 12, 2014 When I started writing this column, a day or so ago, I was lamenting the current “state of war” over internet gaming. Monday the AP published Gambling industry fights self on Internet gambling; on Tuesday the Financial Times did a similar piece (written by Aaron Stanley, an occasional CDC Gaming Reports contributor) entitled "Casino owners battle over online gambling." More will follow. I don’t … [Read more...]
Prominent women in gaming to discuss industry By Howard Stutz, Las Vegas Business Press • February 10, 2014 Patricia Becker holds the distinction of being the first woman to serve on the Nevada Gaming Control Board. She’s actually the only woman to ever hold a seat on the regulatory panel. Twenty years have passed since then-Gov. Richard Bryan elevated Becker from chief deputy attorney general in charge of the gaming division to one of three Control Board members who oversee the full-time state … [Read more...]
Long-time friendship helped attorney break into sports law By Howard Stutz, Las Vegas Review-Journal • February 9, 2014 A childhood friendship that continued through college helped attorney Robert Caldwell break into sports law. On the surface, it might not appear to be a major field of law in Nevada. The state isn’t home to a professional major league sports franchise. Caldwell, however, has turned the practice into a key part of his job with the Las Vegas law firm Kolesar &Leatham, where he is primarily … [Read more...]
INSIDE GAMING: Who wants ties to that guy? By Howard Stutz, Las Vegas Review-Journal • February 9, 2014 Clearly, Caesars Entertainment Corp. doesn’t want visitors to The Cromwell to gamble, drink, smoke, fornicate or perform any other sinful act at the newly renamed boutique Strip hotel-casino. I can’t wait to hear the marketing campaign. Why else would the casino company rename the former Barbary Coast/Bill’s Gamblin’ Hall in a way that could be associated with England’s 17th century “Lord … [Read more...]
Florida: It is about time! By Ken Adams • February 6, 2014 The gaming debate is back on in Florida; it debate took a two year hiatus. It is about time it came back, we need something exciting to follow. For far too long, Massachusetts has dominated the expansion narrative in the media. Even New York could not dislodge Massachusetts. Probably New York could not unseat Massachusetts because there was simply no drama in New York. There was no name … [Read more...]
Mr. Wynn’s Internet Gaming Turnaround? By Jeffrey Compton • February 4, 2014 Monday was the busiest day in the history of the CDC Gaming Reports website. Fueled by interest in the Super Bowl over 1,400 people visited the site – with over 2,300 page views. However it was two other stories that caught my eye: Wynn joins Adelson crusade against web gaming (in respected political reporter Jon Ralston’s blog) and from the equally respected Wayne Parry (Associated Press) NJ … [Read more...]
Macau feels strain during Lunar holiday influx By Kelvin Chan, Associated Press • February 4, 2014 MACAU (AP) - In a scene from the James Bond movie "Skyfall," the British superspy arrives in Macau aboard a small raft that glides under an arched bridge, past hundreds of floating paper lanterns and through an illuminated dragon head to reach a casino. When I made the trip to the tiny Chinese gambling mecca at the height of the Lunar New Year holiday on Monday, it was decidedly less … [Read more...]
In talks over keeping National Finals Rodeo, Orlando, Dallas never had a chance By Howard Stutz, Las Vegas Review-Journal • February 2, 2014 Did you seriously think Las Vegas was going to lose the National Finals Rodeo to Orlando, Fla., or Dallas? After six weeks of back-and-forth rhetoric, a new 10-year agreement was announced Jan. 24 to keep the NFR in Las Vegas — its home for 29 years — through 2024. Cowboys and stock contractors will get about $6 million more a year in prize and sponsorship money. The hotel-casino industry … [Read more...]
A recovery for European casinos? By Davide Tedesco • January 31, 2014 The European Casino Association (ECA) represents the interests of approximately 800 companies operating in 23 EU countries, with more than 55,000 employees. In November 2013, ECA issued its first comprehensive report on the casino industry in Europe, using information provided by its members and the National Casino Forum, UK. European casinos have struggled in recent years, with causes … [Read more...]
Cromwell?? By Jeffrey Compton • January 31, 2014 On Friday Caesars Entertainment announced the newest new name for the property formerly known as Bill’s and before then formerly known as the Barbary Coast. They were going to name it Gansevoort Las Vegas due to a marketing partnership with New York City-based Gansevoort Hotel Group – but that deal fell apart when Massachusetts regulators claimed that one of the Gansevoort investors had ties to … [Read more...]
Gaming industry should be careful about embracing digital currencies By Aaron Stanley • January 31, 2014 One of the hottest trends in 2013 was the soaring popularity of digital currencies such as Bitcoin. These decentralized tenders, backed by no government fiat or central bank, are starting to become viable means of exchange. Last week, two Las Vegas casinos announced they would begin accepting Bitcoins at their restaurants and shops. Neither casino allows Bitcoins for bets to be placed on the … [Read more...]
A Royal Dumb Flush is a Losing Hand By Ken Adams • January 30, 2014 In the 21st century, poker has become big business. It is played online, in casinos and in free standing poker rooms. Poker has been played in this country for a very long time. Poker has had a checkered past; it has been legalized and banned, it has been commercially successful and it has been a backroom, private game only. In the 1970s, poker was a mainstay in Nevada casinos, but with the … [Read more...]
Why I’m Attending ICE Totally Gaming This Year By Victor Rocha, Pechanga.net • January 28, 2014 When the Indian Gaming Regulatory Act was passed by Congress in 1988, nobody could’ve predicted the opulent casinos of today rising from the bingo parlors ofthat era. In our wildest dreams, we couldn’t have imaginedIndian gamingas a $28+ billion-dollar industry. And as Indian gaming was booming, the commercial gaming industry was jumping the boundaries of Las Vegas and Atlantic City like … [Read more...]
Assessing Impact By Ken Adams • January 27, 2014 Impact is one of my favorite typefaces – because it delivers on its promise – it has an instant impact on the reader. But Impact is fast becoming much more than a typeface for me. Impact is becoming the dominant theme in the national gaming narrative. Like the typeface, the impact theme demands attention; however, it is not one of my favorite themes. Take Ohio for example. Even as new casinos … [Read more...]
Gaming companies have lucrative deals operating Indian casinos By Howard Stutz, Las Vegas Business Press • January 26, 2014 New casino development in Las Vegas is on lockdown. Gaming expansion into states beyond recently approved markets is virtually nonexistent. Those are two reasons regional casino giant and M Resort owner Penn National Gaming struck a deal with a San Diego-area Indian tribe to develop a long-stalled casino complex in Southern California. A third reason is simple. Penn National, which has … [Read more...]
Does Gaming hurt the Arts? By Jeffrey Compton • January 26, 2014 In recent months CDC Gaming Reports has run several news stories and one commentary expressing the fear that a casino expansion could hurt a region’s performing arts. Since I have a personal and professional interest in both gaming and the arts (five years ago I wrote a guidebook on American performing and visual arts, and built a related website), I can’t ignore expressions of that fear. To put … [Read more...]
INSIDE GAMING: Casinos in Japan? Bet your last yen on it By Howard Stutz, Las Vegas Review-Journal • January 25, 2014 It’s game on, Japan. Word leaked out this past week that two Nevada casino companies have made inroads with Japanese officials to build a nearly $5 billion hotel-casino in Osaka. Now other gaming operators have their corporate jets pointed toward the east Asia island nation. The only thing missing is legislation authorizing casinos. Analysts and gaming leaders consider it a foregone … [Read more...]
From Saratoga Springs: Thanks, but no thanks By Steve Grandin • January 22, 2014 There are undoubtedly cities in New York that can benefit from a casino. Saratoga Springs, however, is not one of them. In 2013, the State of New York decided that a quick way to fill its fiscal coffers was to get a number of casinos to open, as soon as possible, in the upstate area. With the gambling industry outspending opponents by millions of dollars, a statewide vote authorized the … [Read more...]
Cuomo Does Not Plan to Let any Grass Grow under His Feet By Ken Adams • January 21, 2014 It is budget time in New York and gaming is in the budget. Governor Andrew Cuomo’s budget proposal anticipates casinos opening by January of 2015. There is no time to waste, the state needs the tax money those casinos will generate as soon as possible. Cuomo is not planning on any long delays, stumbles or bloody battles at the ballot box or in the competitive trenches that has marked the … [Read more...]
Buffett’s $1 Billion Bet on NCAA Perfection By Kavitha A. Davidson, Bloomberg View • January 21, 2014 Jan. 21 (Bloomberg) -- Warren Buffett’s company has made a $1 billion bet on something most of us already assume to be true: It’s impossible to pick the perfect bracket for the NCAA men's basketball tournament. Berkshire Hathaway has insured a $1 billion prize by Quicken Loans Inc. that would pay the winner $25 million a year over the next 40 years, or one lump sum of $500 million. It’s by far … [Read more...]
Several gaming companies expected to have a good year By Howard Stutz, Las Vegas Business Press • January 20, 2014 With a new year comes new prognostications by Wall Street on which gaming companies will provide investors the best return in 2014. Not surprisingly, Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Resorts International lead the pack. The three companies operate in Macau, which produced a record $45.2 billion in gaming revenue in 2013. All three are adding more multibillion-dollar resorts to … [Read more...]
Reflections of a Newly Minted 59-year-old By Jeffrey Compton • January 19, 2014 I am 59 years old today – and could not be more thrilled. And in six months I expect to be telling folks that I am “going on 60” because I like the sound of that. I have never been concerned about how old I am – plus there can be a wonderful feeling of contentment that comes at this age (Maurice Chevalier expressed it best over 50 years ago.) Thanks to the advances in technology (including … [Read more...]
INSIDE GAMING: $5.5 million fine keeps CG (formerly Cantor Gaming) alive By Howard Stutz, Las Vegas Review-Journal • January 18, 2014 There is a reason officials from CG Technology (formerly Cantor Gaming) said they were “glad to have reached a resolution” with Nevada gaming regulators and will pay the largest fine ever leveled against a casino or affiliated company. The Las Vegas-based bookmaker — a subsidiary of Wall Street financial giant Cantor Fitzgerald LP — faced a potential death sentence by the state Gaming Control … [Read more...]
The End of Two Boardwalk Empires By Ken Adams • January 12, 2014 It is being reported that HBO has decided to stop producing Boardwalk Empire after its fifth season. The HBO series was based the book Boardwalk Empire: The Birth, High Times, and Corruption of Atlantic City by Nelson Johnson. It is a story of politics, crime and corruption during Prohibition in Atlantic City. Five seasons is not bad, not great, but not bad. Although the lifecycles of … [Read more...]
INSIDE GAMING: Gaming lobby unifies message By Howard Stutz, Las Vegas Review-Journal • January 11, 2014 The collegiality developed within the gaming industry as casino companies weathered the economic downturn has evaporated. Opposing opinions are healthy to any debate, especially when the topics include casino expansion into new markets and the potential state-by-state rollout of Internet gaming. But simmering feuds and positions perceived as harmful to gaming can be detrimental to an … [Read more...]
It was Cold in Ohio, Really, Really Cold… By Ken Adams • January 8, 2014 How cold was it? It was cold enough for two casinos to close; that is the good news. The bad news is worse; casino revenues in December dropped faster than the temperatures in January. As everyone in the world knows, the entire eastern part of the country was wrapped in a polar vortex. Temperatures dropped below zero and with the wind chill factor, temperatures were as low as 20, 30 or even 40 … [Read more...]
INSIDE GAMING: Sunny days may be ahead for MGM Resorts (LVRJ) By Howard Stutz, Las Vegas Review-Journal • January 5, 2014 In a recent research note, J.P. Morgan gaming analyst Joe Greff said MGM Resorts International offers “fresh ideas” for stock investors exploring their options in the new year. And that was before the casino company cleared several giant hurdles in December for building two potentially lucrative gaming complexes in the Northeast. With almost $3 billion in developments looming in Macau and … [Read more...]
Adelson Trying to Bend it Like Beckham By Ken Adams • January 1, 2014 Sheldon Adelson is not the most popular person in the industry. He is said to be a very harsh manager, a very demanding negotiator and very critical of his competitors – but with his very high profile he is difficult to ignore. Early in 2013, Adelson shocked many observers in the gaming industry when he announced his intention to build a $30 billion project in Spain, and then he shocked them … [Read more...]
2013 was a good year – and may 2014 be even better! By Jeffrey Compton • December 30, 2013 Both personally and professionally, I am happy to look back on 2013 as a very good year, and look forward to a better one in 2014. This year CDC Gaming Reports increased our website traffic by 325%, continued our collaboration with the Associated Press and the Las Vegas Review Journal, and have just added Bloomberg News. We expanded our commentary section (including Good Gaming Humor), … [Read more...]
With National Harbor decision, battle for Washington DC casino market enters newest phase By Aaron Stanley • December 25, 2013 Last week, in a widely anticipated decision, Maryland authorities awarded MGM Resorts the state’s sixth and final casino license. MGM will use that to build a massive Vegas-style facility at National Harbor, just south of Washington, DC. While the decision was celebrated by MGM, which expects the prized new resort casino to be among its most profitable, it was yet another significant defeat for … [Read more...]
Killing the Goose that Lays the Golden Eggs By Ken Adams • December 24, 2013 In the last twenty-five years, many states have discovered that when properly managed legalized gambling can be a golden egg laying goose. The states have had many options from which to choose: lotteries, casinos, slot machines, poker, sports betting, bingo, horse racing and most recently, online gaming; any of those options can be tapped to bring revenue into the state’s coffers. But the … [Read more...]
Welcome to the 2014 AGA By Geoff Freeman, President and CEO of the American Gaming Association • December 23, 2013 The American Gaming Association - which has ably protected the gaming industry for 18 years - is expanding its focus to become the greatest advocate for gaming that the industry has seen. As demonstrated by our recent additions to the Board of Wynn Resorts, Station Casinos, Churchill Downs and Scientific Games, the AGA is generating tremendous energy across the gaming industry and pivoting as an … [Read more...]
INSIDE GAMING: Customer panel praises IGT By Howard Stutz, Las Vegas Review-Journal • December 21, 2013 Rather than having only International Game Technology executives tout the company’s products to the investment community, the company put its customers on the hot seat. The move could have backfired. But it didn’t. Several analysts attending IGT’s annual Investor Day presentation in New York City earlier this month said the customer panel — which included a Canadian gaming official, three … [Read more...]
A Billion Dollar Christmas Present – No Laughing Matter By Ken Adams • December 18, 2013 If you haven’t heard some version of this as a joke, you probably will: “How sad, I will not get a billion dollars for Christmas this year or even half a billion. I had my hopes; I owned 50 percent of 20 Mega Millions lottery tickets for the drawing on Tuesday, December 17th. But alas, the Mega Millions jackpot hit – there were two winning tickets – neither of which was mine.” None of us … [Read more...]
GAMING LOOK AHEAD: Remakes of properties, work on Resorts World expected to enliven Strip in ’14 By Howard Stutz, Las Vegas Business Press • December 16, 2013 The biggest gaming story of 2014 might be a 2016 or a 2017 event. Malaysia-based Genting Group is expected to begin construction sometime in 2014 on the $2 billion-to-$7 billion Resorts World Las Vegas, returning construction activity to the 87-acre Echelon site that has sat dormant for almost five years. It will take at least two to three years to complete the 3,500-room Resorts World, … [Read more...]
INSIDE GAMING: SLS Las Vegas aims to avoid Cosmo’s mistakes By Howard Stutz, Las Vegas Review-Journal • December 14, 2013 Much has been speculated about the business model for SLS Las Vegas. Los Angeles-based SBE Entertainment is spending $415 million to transform the Rat Pack-era Sahara into a stylish, ultramodern hotel, bringing to the Strip amenities closely associated with Hollywood and Beverly Hills, Calif. When the remade hotel-casino opens in September, SLS Las Vegas will have nearly a dozen restaurants … [Read more...]
Reno is Heading Down a New Path – Will Others Follow? By Ken Adams • December 11, 2013 One of the ways we measure the health of the casino industry and track its trends is with the monthly casino/gaming revenue; each state with casinos releases the monthly revenue numbers separately and in different formats. The state reports paint a picture of the state of the industry for the previous month in that state. The monthly gaming figures are released in Atlantic City on the tenth of … [Read more...]
AGA introduces new Community Impact video By Geoff Freeman, President & CEO, American Gaming Association • December 9, 2013 Across the country, the gaming industry is making communities better – creating jobs, generating opportunities for local suppliers, increasing tourism and giving back through volunteerism and philanthropy. While none of this is a surprise to those who work in the industry, it is our responsibility to tell that story every chance we get. As the AGA gets ready to embark on a new year, we look … [Read more...]
Mixed results for East Coast Internet gaming rollouts By Howard Stutz, Las Vegas Business Press • December 9, 2013 If his gaming analyst job doesn’t work out, Brian McGill could try winning a seat in the Main Event at the World Series of Poker. At least the Internet version. In late November, McGill, who follows publicly traded casino companies and slot machine manufacturers for financial services company Janney Montgomery Scott, sampled the new East Coast Internet gaming opportunities in Delaware and … [Read more...]
So sorry, Mr. Poster, your plug’s been pulled By Howard Stutz, Las Vegas Review-Journal • December 7, 2013 If Tim Poster’s suitability hearing in front of Nevada gaming regulators had been filmed for reality television, it might have saved that awful “The Casino” series he and business partner Tom Breitling had when they owned the Golden Nugget in 2004. Low ratings caused the show’s cancellation after a half-dozen episodes. Poster’s 4½-hour meeting with the Nevada Gaming Control Board in Carson … [Read more...]
Apology to the Oneida Casino in WISCONSIN By Jeffrey Compton • December 6, 2013 I 've always received straight A’s in history, but for some reason could barely pass Geography – it has never been my topic. In last Thursday's Flash when writing about their $28 Million expansion I accidentally moved the Oneida Casino (on paper) from Wisconsin to New York. There is no excuse for it, I have visited the property (located in Green Bay) quite a few times and should remember where the … [Read more...]
Q&A with Dennis Mathews, operations manager for Red Rock Lanes By Howard Stutz, Las Vegas Business Press • December 3, 2013 Dennis Mathews, 44, picked up his first bowling ball at age 8 and has spent most of his life in a bowling center. He wouldn’t have it any other way. Mathews, who has operated the 72-lane Red Rock Lanes inside Station Casinos’ Red Rock Resort since its opening in 2006, has spent 27 years in bowling center management. Mathews ran three locations in Southern California before moving to Las … [Read more...]
Valid reasons to oppose Internet gambling By Sheldon G. Adelson, Special to the Las Vegas Review-Journal • December 1, 2013 Howard Stutz’s Nov. 24 column (“Look out, Net bets, Adelson’s after you”) employed a medieval practice used to avoid confronting unpopular positions. When you can’t defend the message, attack the messenger. The truth is I am not alone in my opposition to Internet gambling. While a majority of Americans are in favor of “live” casino gaming, recent surveys show that more than 70 percent … [Read more...]
INSIDE GAMING: No mixed signals, no more Macau licenses By Howard Stutz, Las Vegas Review-Journal • December 1, 2013 Anyone trying decipher subliminal messages from the early November policy address by Macau’s top government official would have an easier time determining whether the Beatles were secretly telling us Paul was dead through the “Abbey Road” album cover. Both ideas are urban myths. Macau Chief Executive Fernando Chui wasn’t sending hidden signals when he delivered his 2014 annual speech to the … [Read more...]
A New Beginning for the (original) Venice Casino? By Davide Tedesco • November 29, 2013 In September 2013, the City Council of Venice agreed to privatize the operation of the city's two gaming sites. The company which will run the world's oldest casino is to selected by the end of this year, by a public bidding process. The buildings themselves will remain owned by the City. The Venice Casino has been in a long-term decline. The number of visitors has reached an all-time low, and … [Read more...]
Grand Theft Auto is Entering the Gambling Game By Ken Adams • November 28, 2013 It is no secret; the cat is out of the bag. Online casino gaming has officially arrived. New Jersey’s entry into online gaming kicked off a new era for the gaming industry. Granted, Nevada and Delaware both began online gaming before New Jersey, but neither have enough people or a wide enough range of betting options to really test the new frontier. New Jersey is better suited for that task. … [Read more...]
Bloomberg View: Internet Gambling Deserves a Chance to Make It Nationwide By • November 27, 2013 In a victory for fun, liberty and sound fiscal policy, New Jersey will tomorrow let most of its residents gamble online. All Americans should be so (dare we say it?) lucky. New Jersey is the third state, after Delaware and Nevada, to permit online gambling within its borders, and a dozen or so others will consider doing so next year. By 2023, according to a forecast by Bloomberg Industries, … [Read more...]
Say what you will, Adelson is right on web gambling By Steve Sebelius, Las Vegas Review-Journal • November 26, 2013 Of all the things that have been said recently about Las Vegas Sands CEO Sheldon Adelson’s crusade against online gambling, there’s one missing: He’s right. That’s a far, far different thing from saying he’ll succeed in getting a federal ban of all online wagering, or that he should. And it’s also not saying he has pure motives — as my colleague Howard Stutz pointed out Sunday, Adelson doesn’t … [Read more...]
INSIDE GAMING: Adelson faces steep odds in campaign to roll back Internet gambling By Howard Stutz, Las Vegas Review-Journal • November 24, 2013 Earlier this summer, Sheldon Adelson told those nasty little Internet gaming punks to get off his lawn. Now, he thinks they egged his house. As payback, the chairman and CEO of Las Vegas Sands Corp. says he’ll put online gaming out of business forever in the United States. Adelson, 80, who is ranked 11th on the Forbes 400 with a net worth of $28.5 billion, is opening his wallet to fight … [Read more...]
Second Thoughts on the Incredibly Slow Process in Massachusetts By Ken Adams • November 20, 2013 It has been two years since the enabling casino gaming legislation passed in Massachusetts and nothing has happened. That is not exactly accurate as lots has happened, but no casinos have been built. In fact none have been licensed. The enabling legislation requires community approval, a two-step process, before a casino can be built. A casino company wishing to bid for a license must first … [Read more...]
Remembering the shock, fifty years later By Jeffrey Compton • November 19, 2013 I was eight years old, in the third grade – and about to begin a rare Friday afternoon off from school, because there was teacher conferences at Adrian Elementary that day. I was playing with a friend on the third floor of our home in South Euclid Ohio when my mother came up the stairs screaming “The President has been assassinated.” “What does assassinated mean?” I asked. “He was killed, he’s … [Read more...]
GAMING INSIDER: Smiles abound with Scientific Games-WMS merger closed By Howard Stutz, Las Vegas Business Press • November 18, 2013 The marriage between lottery provider Scientific Games Corp. and slot machine manufacturer WMS Industries is still in the honeymoon phase. The $1.5 billion merger, in which the smaller New York-based lottery company acquired the casino industry’s third-largest manufacturer, was completed Oct. 18. Scientific Games, which was licensed in Nevada in September, thinks the combined company could … [Read more...]
INSIDE GAMING: Foreign deals can include risks (LVRJ) By Howard Stutz, Las Vegas Review-Journal • November 16, 2013 Payoffs to government officials typically don’t show up on the balance sheets of U.S. gaming companies. That the accounting practice is commonplace in some countries was a reason Penn National Gaming rejected expansion into Asia. In a speech Nov. 8 to the Baron Investment Conference in New York City, Penn National Chairman Peter Carlino said the regional casino operator explored a joint … [Read more...]
A casino on Martha’s Vineyard? “No Way” By Jeffrey Compton • November 15, 2013 I’ve never been to Martha's Vineyard. When I read that the Wampanoag Tribe of Aquinnah had said they had Federal approval to put a casino on the island, I wasn't sure what to think. So I called the person, from among those I know, most likely to be informed about the subject: Sarah McCormick Regan. Sarah and I went to Babson College together, and though we have not seen each other since our … [Read more...]
And They’re Off! (and running ’til November 2016) By Ken Adams • November 13, 2013 Horse racing is probably a bad analogy for an election, but it paints the right picture for the moment. According to the British bookie, William Hill, the 2016 campaign for president of the United States has officially begun with the first major wager being placed on the election. The odds that Hillary Clinton will be elected currently stand at 5-2. Hill moved the odds on Ms. Clinton from 2-1 to … [Read more...]
INSIDE GAMING: Culinary’s futile effort against the Cosmopolitan (LVRJ) By Howard Stutz, Las Vegas Review-Journal • November 10, 2013 The only Sin City video getting more hits on the Internet than the Culinary union’s recent taunting and name-calling of people entering The Cosmopolitan of Las Vegas was the 2011 clip of Batman getting body-slammed on the Strip by a drunken tourist. Then again, Culinary workers aren’t costumed characters asking for a couple of bucks to pose for a picture, unless you consider a hotel bellman … [Read more...]
Gaming industry pushes for Congressional crackdown on patent “trolls” By Aaron Stanley • November 8, 2013 Patent reform is not a subject matter typically associated with casino gaming, but industry heavyweights are throwing their weight behind bipartisan congressional proposals to crack down on abusive litigation by patent “trolls”. The American Gaming Association, in conjunction with are other business groups, is seeking to highlight the negative economic impacts of frivolous litigation on small … [Read more...]
Four Predictions in today’s gaming-related elections By Jeffrey Compton • November 5, 2013 If Jeffrey Compton would ever be accused of promoting gambling it won’t be over blackjack, horse racing, sports betting or even video poker; my weakness and joy is election wagering. Today’s is an off-year election with only two governorships up, no senate seats, maybe the odd house seat but a host of interesting local issues – including four important casino related expansion measures on the … [Read more...]
Nevada online poker websites still in their infancy By Howard Stutz, Las Vegas Business Press • November 4, 2013 It’s unfair to compare Nevada’s adolescent Internet poker market to the pre-Black Friday online poker world that existed in the U.S. a few years ago. On a good day, the state’s two currently operating real money poker websites — UltimatePoker.com and WSOP.com — might have a peak cash game player pool of roughly 250 to 300 participants combined. That includes players who bought into different … [Read more...]
Court’s tip for Steve Wynn: No need to apologize By John L. Smith, Las Vegas Review-Journal • November 3, 2013 It took some time, but Steve Wynn got what he wanted. In overruling a District Court judge who only appeared to have Nevada statute on his side, the state Supreme Court on Thursday released its unanimous decision that the mandatory tip-pooling policy at Wynn’s Strip casinos was legal. Dealers at Wynn Resorts Ltd. must share their tips with floor personnel traditionally considered … [Read more...]
INSIDE GAMING: Bay State blunders: Massachusetts now an embarrassment on gaming scene By Howard Stutz, Las Vegas Review-Journal • November 3, 2013 Two years ago, Massachusetts was considered a potentially lucrative gaming opportunity. The past two weeks, however, have called into question the viability of the Bay State’s incubating casino market. Massachusetts is moving ahead with a single Las Vegas-style casino in each of three geographically separate regions: Boston, the southeast corridor and the western half of the state. But it … [Read more...]
An Update on Casino Gaming Expansion on the East Coast By Ken Adams • October 29, 2013 The casino gaming news these days is filled with stories of expansion. Florida, Massachusetts, Maryland, New Hampshire, New York and Pennsylvania all have expansion on their radar screens. New Hampshire is working on new regulations as a prelude to expansion and Florida is studying the issue. Massachusetts, Maryland and Pennsylvania are in the process of granting casino licenses. Maryland only has … [Read more...]
Boom time in Macau continues to buoy Las Vegas Sands By Howard Stutz, Las Vegas Business Press • October 27, 2013 The Venetian and Palazzo on the Strip provided Las Vegas Sands Corp. with somewhat lackluster revenues in the third quarter. Wall Street didn’t give the results much attention. Macau is what drives Las Vegas Sands. In the three months ended Sept. 30, the company’s four major Macau gaming divisions produced a 43 percent increase in revenues and an 89 percent jump in profits compared with a … [Read more...]
INSIDE GAMING: Caesars Entertainment’s terrible, horrible, no good and very bad weekend (LVRJ) By Howard Stutz, Las Vegas Review-Journal • October 27, 2013 Has there ever been a gaming company that suffered through a worse 72-hour period than Caesars Entertainment Corp.? On a Friday evening, Caesars was punted from a proposed $1 billion project in Boston. Then the company was forced to dump its licensing partner in a $185 million Strip casino renovation. Hours later, Caesars had to report in a filing with the Securities and Exchange Commission … [Read more...]
Public Polling on Internet Gaming is Meaningless – for now! By Jeffrey Compton • October 26, 2013 (I would like to thank CDC Gaming Reports Editor John Broughton for his invaluable contributions to this analysis.) Twenty-four hours before I sat down to write this column, I had no idea that it would be about Internet gaming. By chance, two contributions this week to CDC Gaming Reports dealt with the subject. Friday afternoon, the Las Vegas Review Journal published a story on the findings of … [Read more...]
Legalization of online gambling in the US By Artur Loss • October 25, 2013 The prohibition on online gambling in the U.S. ended on June 6, 2013. The Internet Gambling Regulation, Enforcement, and Consumer Protect Act legalized all forms of online gambling except betting on sports. (American Gaming Association, 2013) 37 companies have already submitted applications various state authorities to participate in the newly forming industry, which is going to "go live" on … [Read more...]
State of online gaming in Europe By Davide Tedesco • October 25, 2013 Online gaming within the the European Union (EU) is now governed by the regulations of each participating country. But the EU is moving toward a more coherent, unique European online gaming market. Online gaming services are going through a growing expansion in EU, with an annual growth rate of about 15%. Revenues will probably reach $13 billion by 2015. Today nearly 6.8 million people play one … [Read more...]
Caesars in Massachusetts – Much Ado About Nothing By Ken Adams • October 22, 2013 Caesars has some serious issues, but the reason it withdrew from Massachusetts should not be one of them. Caesars has been in the news a lot lately and most of it has been negative. The latest flurry of Caesars news was initially generated by Caesars’ decision to drop out of the Suffolk Downs’ bid for a casino in the Boston area. Both Suffolk Downs and Caesars agree on the details. The … [Read more...]
What’s in a name? Maybe it’s a company’s reputation By John L. Smith, Las Vegas Review-Journal • October 22, 2013 Although the signage changes with increasing regularity, names are important things in the casino business. So it came as a relief to learn that Caesars Entertainment Corp., as the Review-Journal reported Monday, had decided to dump the Gansevoort Hotel Group from its planned redevelopment of the casino once known as the Barbary Coast. A name that communicates a hip and classy image on Park … [Read more...]
Daily Fantasy Games, Legal or Not, Rise in The World of Fantasy Sports By Aaron Stanley • October 20, 2013 At first glance, the homepage of FanDuel looks like an online sports casino. But the company, which paid out $50 million in winnings in 2012, is not a traditional online sports bookie. Rather, FanDuel is a fantasy sports website, offering a popular and controversial new genre of wagering contests known as “daily games,” in which players select fantasy “teams” consisting of real-life players and … [Read more...]
Bryan Sandoval: The Middle Seat Governor By Ken Adams • October 20, 2013 Nevada is a very small state with an estimated 2.7 million inhabitants in 2012. Seventeen states have fewer people, but only eight have more land. That sums up Nevada, few people, but lots of land – desert land. In a barren land, you when meet another traveler, it is important to stop and talk for awhile; it may be a long time before you see another living human being. There are two urban … [Read more...]
Dotty’s in Illinois – a New Era and a New Opportunity By Ken Adams • October 18, 2013 A tiny article in the news on Monday, October 14th caught my eye. A Nevada-familiar name, Dotty’s, received a license to open a café with slot machines in the village of Homer Glenn in Illinois. According to the story, Dotty’s intends to develop a chain of Dotty’s Cafes across Illinois. “The chain is designed to cater to women 35-years and older in a home, Grandma’s-kitchen style atmosphere,” … [Read more...]
State of Play: New Jersey By Luke Hayward • October 17, 2013 New Jersey is set to make U.S. gambling history, as it prepares to license and run intra-state online casino gambling on a truly grand scale. Although Delaware, with three land-based casinos running online gambling, will likely be first out of the gate, in late October, New Jersey will be far larger. Projected annual tax revenue from New Jersey’s online gambling ranges from nine to almost fifty … [Read more...]
AGA Announcing Judy Patterson’s Departure By Geoff Freeman, AGA president and CEO • October 15, 2013 The American Gaming Association (AGA) is announcing today that Judy Patterson has resigned as senior vice president and executive director. She will continue to support the organization as a consultant over the next year. Working alongside Frank Fahrenkopf, Judy was instrumental in the creation and success of the AGA. Among her signature accomplishments is the 1996 creation of the National … [Read more...]
What I learn from what you read! By Jeffrey Compton • October 12, 2013 In his far-too-short tenure as CDC Gaming Reports Flash Editor, the late Jeff Simpson repeatedly told me “Check out which news stories our subscribers click and read. It will improve the products, plus you will learn a lot about the industry.” He was right on both counts. Through the wonders of web technology, I am able to see which of the two-dozen stories we feature each day (in the Flash or … [Read more...]
Size Does Make a Difference By Ken Adams • October 3, 2013 One fact stood out at G2E 2013; slot machines are getting bigger. In fact, compared to the little boxes of the 1950s slots that provided the basic DNA for today’s games, they are gigantic monsters. And like the dinosaurs, the long-gone animal monsters that once dominated the planet, today’s gigantic slot machines need a great deal of territory and sustenance to survive. Seemingly, every year … [Read more...]
Getting past the Superficial, Sensational and Attention Getting Headlines By Ken Adams • October 2, 2013 In the era in which we live, the media panders to the basest elements of human nature. It chooses subjects that titillate us, rather than subjects which might inform us. Every day on internet news sites, in the print media and on television, we are bombarded by the trite and the sensational – in depth or to use the Latin phrase – ad nauseam – until we are nauseated. The media follows ordinary … [Read more...]
AGA: Gaming Industry Impact of Federal Government Shutdown By Geoff Freeman, AGA president and CEO • October 1, 2013 Gaming Industry Colleagues— As you've no doubt heard, Congress failed to reach an agreement on funding for the federal government and all non-essential functions entered a "shutdown" as of midnight this morning. No one in Washington has a good sense as to how long this shutdown will continue (despite the countless pundits who dominate your television). The American Gaming Association is … [Read more...]
Online Betting and Off Track Betting are Both Remote Propositions By Ken Adams • September 29, 2013 G2E 2013 was huge; nearly 30,000 people attended. In attendance and in expo space being used, G2E 2013 approached pre-recession levels. The attendees did what people have been doing at G2E and its predecessors for years; G2E is an annual industry tradition, it has its rhythms that everyone acknowledges and follows. In the mornings they listen to discussions on the industry, in the afternoons … [Read more...]
Reluctant casinos get clear warning (LVRJ) By John L. Smith, Las Vegas Review-Journal • September 29, 2013 As she made her way through the Sands Expo Center, the most dangerous woman in Las Vegas easily passed for one of the thousands of attendees at last week’s behemoth Global Gaming Expo convention. In a town where showgirls and Celine turn heads, straight-talking Jennifer Shasky Calvery in her business attire blended into the crowd. It’s what Shasky Calvery, the director of the Department of … [Read more...]
Random G2E opinions posing as thoughtful commentary By Jeffrey Compton • September 28, 2013 This year’s G2E show floor was a happy place – even on the last day (my favorite time to go). With a few exceptions (I did hear detailed, specific concerns regarding the effects of Obamacare), everyone was upbeat about their business and overall industry trends. Several people told me that this was the first G2E they’ve attended in the last few years. Vendors said that traffic was strong in both … [Read more...]
Looking for an Identity at G2E By • September 22, 2013 G2E is getting ready to open its doors on its 2013 edition, the gaming/casino industry’s annual trade show. For three days, twenty thousand or so people from around the world will gather in Las Vegas to listen to discussions on the industry and to view the products that constitute the “games” of the gaming. On the top of everyone’s list of new products will be the slot machines – hundreds of new … [Read more...]
Closing Tables on Graveyard? That is Simply Unacceptable! By • September 18, 2013 In the gaming industry, regulation does more than control the gaming activities; regulation also limits and defines legal gaming and the nature of a casino. Las Vegas and Atlantic City casinos are byproducts of each state’s gaming regulations. The size and scope of the Las Vegas Strip would not have been possible with New Jersey regulations; Atlantic City could never have developed an east coast … [Read more...]
A final romantic dinner for Nancy and Bob Vannucci By Ken Adams • September 15, 2013 On September 10, the Las Vegas Review-Journal had a touching story about Bob Vannucci. According to Richard Lake, Vannucci is in hospice care and does not have long to live. His last wish was a romantic dinner with his wife. Bob and his wife, Nancy, met and married in 1967 when both worked at the Dunes. Bob’s career in gaming spanned the same 46 years as his marriage. Both the marriage and the … [Read more...]
Why Marketing People Should be at G2E By Bert Bertino • September 13, 2013 At the Global Gaming Expo (G2E), September 22-26, nearly 30,000 casino gaming executives from across the world will view and discuss both new and time-proven products and programs. They will not only visit booths on the floor and the attend meetings, but they'll also do networking during after the show. All that means a great opportunity for learning and growth for the industry. (Disclaimer: I'm … [Read more...]
Winning Massachusetts by getting the Lowells, if not the Cabots By Jeffrey Compton • September 11, 2013 Five of my happiest years happened in Massachusetts, in the mid-1970s, as I pursued a bachelor’s degree and an MBA from Babson College, in Wellesley. And four of my happiest summers were recent ones spent in the Berkshires, a world-class center for summer cultural entertainment. My first day at Babson, I heard the famous toast of John Collins Bossidy: “Here’s to dear old Boston, home of the … [Read more...]
Hit Me!: Fighting the Las Vegas Mob by the Numbers sight unseen By Ken Adams • September 10, 2013 Dennis Gomes led a romantic life. He died in 2012 in the midst of an attempt to turn around the struggling Resorts Casino in Atlantic City. It was the last act of a 40-year career of swimming upstream against common practices and wisdom. In the first act, Agent Gomes was a Nevada gaming regulator who moved in a dangerous zone between the world of mobsters and casino bosses. He was instrumental in … [Read more...]
Steven the Wizard of Oz Wynn By • September 5, 2013 Wherever he goes and whatever he does, Steven Wynn attracts attention. Of course, the main reason people are interested in the comings and goings of Wynn are his casinos. Any time a new Wynn casino opens it is international news. It is news because a Wynn casino means features and concepts that are unique to the industry; a new Wynn casino is a game changer. Besides the realities of Wynn’s … [Read more...]
Is Scott Walker against free market capitalism? By • August 30, 2013 Wisconsin was one of the first states to agree to Indian tribes casinos. That the casinos were to be on traditional tribal land was an underlying assumption. By June of 1992, Governor Tommy Thompson had finalized the last of the 11 tribal-state compacts and Indian gaming in Wisconsin was off and running. In the early years of Indian gaming there was still considerable confusion about what … [Read more...]
Riding the Bus: from Harrah to Bethlehem, from Wynn to Highland By • August 27, 2013 On Thursday, August 22nd, 50 people were injured when a bus bound for San Manuel Indian Bingo & Casino in Highland, California overturned. These days it takes a bus accident before the topic of “casino buses” interests anyone beside the bus operators, the bus riders and the casinos footing the bills. Busing has become something very different from what it started out to be. Long, long ago in … [Read more...]
Bill Harrah, Donald Trump and some depressing numbers By • August 22, 2013 Numbers alone and by themselves are meaningless if they no context, comparison or accompanying narrative. We need something more than the numbers themselves to give them meaning. So, for example, to say that the casinos in Mississippi generated $192 million in July does not give one much insight into the casino industry in Mississippi. To give any set of financial numbers context we normally … [Read more...]
Fluttering in the British Isles By • August 19, 2013 Understanding another culture is nearly impossible, but it is far more difficult when you are thousands of miles away with nothing but a few scattered newspaper articles for information. Even when the culture is your mother culture, it is a challenge; Great Britain, the United Kingdom – dear ole England – gave the United States a great deal; it handed us our language, the foundations of our … [Read more...]
Resorts World – Just a Subway Stop Away By • August 14, 2013 The casinos in Ohio are in giving free play a serious test run. In July, some of the casinos gave away as much as 30 percent of casino “win” in free play. That is a foretaste of some of bloody marketing battles yet to come The battles will be fought not just in Ohio, but all around the region. Those marketing wars are just beginning; over the next few years the competition between casinos in … [Read more...]
Summer on the Boardwalk; July 2013 in Atlantic City By • August 9, 2013 From the opening bell on May 26, 1978, the casinos in Atlantic City were successful. In its first year, Resorts generated $134 million in gaming revenue and by 1981 there were 9 casinos in the boardwalk city generating over a billion dollars a year in annual gaming revenue; in 2006 AC gaming revenues reached $5.2 billion; however, 2006 was the peak and the last year of the growth. Since then … [Read more...]
The Midwest Marketing War of 2013 By • August 8, 2013 The July gaming numbers are in for Ohio. The casinos which were open in July of 2012 were down in July 2013. The Horseshoe in Cleveland was down 17 percent – about the same as the casinos in Indiana have been down since the first casinos opened in Ohio. The Horseshoe Cleveland Casino grossed nearly $19.9 million last month…down 17 percent when measured against July of last year… ThistleDown, … [Read more...]
Rick Pitino wants to save horse racing – good luck, Rick By • August 2, 2013 Horse racing has been a challenged industry (some call it a sport) since casinos started to spread out of Nevada and across the country. In any state with racing as soon as casinos start to open in that state or in a neighboring state, racing revenues take a dive. Looked at as simply a betting or gambling proposition, the decline is not difficult to understand; racing is boring compared to other … [Read more...]
Dayclubs, sports bars and the internet: where is Las Vegas headed? By • July 31, 2013 The casino industry is dynamic. Nothing remains the same for long and those who fail to note that fact get left in the dust. The famous trendsetters like Steve Wynn are always reinventing the casino experience and broadening both our concept of what constitutes a casino and their own. At the moment, Wynn is off in Macau building a flower palace for $4billion dollars, but back at home in Las … [Read more...]
Wall Street on steroids in Macau By • July 24, 2013 It is often argued that Wall Street is the cause of many of the worst of modern business practices. It is the world of Wall Street that puts a constant pressure on all publicly traded companies to increase earnings and profits every quarter; that pressure creates a culture of short-term, impatient for profit management. The term Wall Street itself is a convenient label for an intellectual … [Read more...]
Fact checking is getting to be a lost art By • July 17, 2013 One of the side effects of the rapid expansion of gaming is a rapid expansion of gaming reporters. Ohio, Pennsylvania, Massachusetts and Maryland have all spawned homegrown reporters with new assignments covering the gaming industry; and Macau has by itself has led to the minting of dozens of new reporters from all over the world eager to cover gaming. Even the major news services, Reuters, … [Read more...]
The Fool’s Wager By • July 14, 2013 There is a phenomenon taking place in Macau that reminds me of the 1980’s in Nevada casinos. In Macau, the number of players is decreasing or remaining the same, but the average wager per player is increasing. The wager is going up because the VIP operators are raising the minimum wager. How else to increase the profits? Without increasing the number of players the only way to increase the … [Read more...]
Economic and Security Review Commission; Being investigated by Congress is always painful By • July 5, 2013 A congressional committee, the U.S.-China Economic and Security Review Commission, is holding hearings on the impacts of economic practices on national security; and last week that mean money laundering in Macau. Some of the committee members are thinking, as Bob Dylan once famously sang: “two men died neath the Mississippi moon, somebody better vestigate soon.” The committee is not so … [Read more...]
Those unintended consequences reaching into Iowa By • July 3, 2013 Today, Radio Iowa had an article that makes a perfect follow-up to my blog; The Law of Unintended Consequences and VLTs in Illinois. The article is about casinos in Iowa not Illinois. However, it mentions the VLTs in Illinois. According to Radio Iowa the VLTs are impacting the casinos in Iowa that are close to the border with Illinois. It is just that simple; people have a limited portion of … [Read more...]
The Law of Unintended Consequences and VLTs in Illinois By • July 1, 2013 Expansion in mid-2013 is still the major story in the casino industry. Expansion into new states or within a state has often been driven by lawmakers looking for new sources of revenue to balance budgets. But, there have been other reasons for expansion; in true democratic style, gaming sometimes expands by the will of the people and in a less democratic style by the will of the governor. Ohio, … [Read more...]
A tale of regulation and two cities; a Boardwalk and a Strip city By • June 27, 2013 Since 1978, it has been impossible to avoid comparing the cities and the casinos of Las Vegas and Atlantic City. In the beginning they were the only American jurisdictions with casinos; but even as Iowa, Colorado, South Dakota, Illinois, Indiana, Mississippi, Missouri and Louisiana joined the ranks of states with casinos, Las Vegas and Atlantic City were still the crème of casino crop – the gold … [Read more...]
Wayne Gilliland was a casino manager’s friend By • June 23, 2013 Over the course of everyone’s career a few people always standout; people who for one reason or another made a big difference. One of those people for me was Wayne Gilliland. In the 1980s Wayne was in the midst of a second career as a gaming agent; Wayne had retired from the California Highway Patrol and had come to Reno to work for the Nevada Gaming Control Board. He stayed with gaming for 15 … [Read more...]
Tribal casinos are struggling like everyone else By • June 21, 2013 Indian gaming under the regulation of the National Indian Gaming Regulatory Act has been around for 25 years. Most of the newness and strangeness has worn off, and in most communities with Indian casinos, Indian gaming is pretty well-understood. However, there are still a couple of myths that persist about Indians, Indian casinos and the law; the most common of which deals with Indian wealth. … [Read more...]
The Delaware Dilemma By • June 16, 2013 The lotteries may be able to change the rules, but casinos can’t; when casinos become overwhelmed by the economy, competition and taxes they are left with few options. One of those options is going to the capitol to ask for tax relief, as the casinos in Indiana did recently; the casinos in Indiana, as everyone knows by now, have been serious wounded by the opening of casinos in Ohio. The Indiana … [Read more...]
In an online game the lottery will hold the trump card By • June 12, 2013 Lotteries and casinos are both in the gambling business; each offers its customers an opportunity to make a wager and to buy a chance at the big jackpot. Both the lotteries and the casinos operate under state law and each is regulated by state regulations. The regulations shape the way gambling is operated, which games will be played, how much can be wagered and when and where the wager can be … [Read more...]
Steve’s Wynning Ways By • June 4, 2013 Massachusetts is in a long, slow and tedious process of introducing casinos. With the regulations in place, the selection process has begun; at stake are three casino licenses and one license for a slot parlor. The state has been divided into three zones, each will get a casino. Before the gaming commission awards the licenses, the prospective casino licensees have to convince the leaders of … [Read more...]
When is no news really good news? By • May 29, 2013 One news phenomenon always confuses me; there is no news on holidays. Why is that? Of course, there events that are undeniable and unavoidable, such as earthquakes, bombs and deaths of well-known people – those get reported by the media. But for the most part, especially locally, there is no news at all. The regular reporters must always be off on those days; in their absence, as if by magic … [Read more...]
An adolescent lottery arms race; my jackpot is bigger than your jackpot By • May 22, 2013 The second largest lottery jackpot in the history of the world hit on Saturday, May 18, 2013; it was $590.5 million. The run-up to the record levels of mega jackpots has been much faster since the Powerball officials figured out a way to increase the size of the jackpot by raising the price of the tickets. Powerball is not alone in the giant jackpot lottery world. There are two national lottery … [Read more...]
Counting seats in Macau to predict the future in the U.S. By • May 16, 2013 Just why is gaming revenue in Macau growing so fast? Why has it stagnated in the United States, at least in all existing jurisdictions? Of course, we all know that Macau has mainland China has its primary market – 1.6 billion people. While each jurisdiction in the United States has a much smaller and more limited regional population base – people living within a hundred miles. But is that … [Read more...]
Forbes: Real Money Gambling On Mobile Games Is Here By • May 7, 2013 The major challenge in being a casino industry observer is making sense of the news. It is part of the job, as it were, to take the information available daily, sort out the significant from the routine news and to discover the trends. It is tricky to pick out the significant events and to find the trends that will impact the industry’s future. The process is basically the same whether one is … [Read more...]
It is the Game of Patience Carl Icahn Plays and he plays it well By • May 4, 2013 Just when it seemed that the Atlantic City casino industry was being reengineered from the bottom up Carl Icahn has called a time out. Buying casinos in Atlantic City at bargain basement prices has been a trend lately; for 20, 30 or 40 million dollars anyone can now own a casino on the Boardwalk. At those prices, one just might make a profit, or so the buyers appear to have been thinking. After … [Read more...]
The Proverbial House’s Edge; The house always win in the end By • May 1, 2013 Lately, I have been thinking about some numbers in gaming; and casino gambling is all about numbers, the dollars wagered, won and lost and probability of each expressed numerically. Every casino game is designed to pay less than true odds. The difference between what the casino pays on each wager and the true odds creates the house advantage and that results in the truism: the house always … [Read more...]
Will Japan’s casino surpass the Las Vegas casinos? By • April 24, 2013 A while back I wrote a piece about the growth of gaming in the United States, in particular about the growth of other forms of gaming. I cited Florida and California as examples – California with its 38 million people generates about $10 billion in gaming revenue without the need of a single tourist; the revenue comes from Indian casinos, the state lottery, racing and poker rooms. In the piece, … [Read more...]
A Pennsylvania whirlwind that hit AC, but now it may be turning back and going home By • April 18, 2013 After six years, everyone gets it – Wall Street, investors, state officials, regulators, casino operators, casino employees – everyone considered: Atlantic City is in trouble. The demise of Atlantic City was a topic of discussion at the eight annual Pennsylvania Gaming Congress in Philadelphia. And there is no more perfect place to discuss the downfall of Atlantic City than in the epicenter of … [Read more...]
Could a bus accident bring casinos to Texas? By • April 12, 2013 Recently, while the Texas legislature was in a discussion about allowing casinos in Texas, a bus crashed into the midst of the debate. The bus did not crash into the legislature itself, but its impact is likely to be felt in the debate. There is one very common argument for expanding gaming - it is used in nearly every state entering into casino gambling for the first time – “We need casinos to … [Read more...]
Maybe this Time. Maybe this time, I’ll be lucky By • April 10, 2013 Maybe this Time Maybe this time, I’ll be lucky Maybe this time, he’ll stay Maybe this time For the first time Love won’t hurry away It’s got to happen, happen sometime Maybe this time I’ll win Cabaret, John Kander, Fred Ebb 1972 When Liza sings the song in Cabaret, it is very poignant. Sally Bowles is a young woman who has had many lovers in her life, but never love. Each time, each new … [Read more...]
What is in a name, or a number for that matter? By • April 9, 2013 What’s in a name? That which we call a rose,By any other name would smell as sweet.” William Shakespeare, Romeo and Juliet, 1597 As Willy so famously said, it is the thing that matters, not what we call it. But when it comes to thing itself there is often some room for debate, especially when we describe the thing with numbers. Our world is one bound and valued by economic activity and for … [Read more...]
Sheldon is staging a party and inviting 600 million Chinese By • April 5, 2013 Sports and gambling go together like bread and butter – or something. It is hard to imagine any major sporting event without gambling; it is hard to imagine because it does not happen. The sport leagues in the United States may deny the relationship, but they profit from it. Gambling fires the enthusiasm that feeds all professional sports in the world. In Europe rather than deny it, they … [Read more...]