Showing posts with label casino news. Show all posts
Showing posts with label casino news. Show all posts

Thursday, April 7, 2011

All About Dotty's



In case you missed it, there was a huge fight at The Clark County Commission this week over Dotty's.

Some taverns came under fire from big casinos that argued Dotty’s and some similar establishments weren’t in compliance with regulations that allowed taverns to have a “restricted” gaming license if slot machines were “incidental” to the main business.

The Nevada Resort Association argued that some of the taverns used gaming as their main business, while Dotty’s said its business model was already approved by the Gaming Control Board and previous commissioners.

New ordinances initially were proposed by the Resort Association, the Nevada Tavern Owners Association and commissioners Giunchigliani and Steve Sisolak.

After more than three months of discussions, the two associations and some of the other interested parties came to an agreement on the proposed changes, but Dotty’s and a handful of other tavern operators still argued against the ordinance, saying they had done nothing wrong.

So what got passed? After a series of confusing votes Tuesday, this is what finally emerged.

The ordinance requires new taverns to be at least 2,000 feet apart, have a minimum of 2,500 square feet of space open to the public, a bar with at least eight slot machines built in, a kitchen, and a restaurant with at least 25 seats that serves food for at least 12 hours a day.

The changes also require existing taverns that don’t have a bar with machines to add one within two years. Existing establishments don’t have to add a restaurant or meet the other requirements.

Commissioners did add a line to the ordinance allowing existing taverns that are more than 20 years old to be grandfathered in and not have to meet the bar requirement.

But the changes essentially end Dotty’s business model of small establishments that only serve basic food and drinks.

So what is this about? Is there a real issue here? Or is Dotty's forced into a competitive disadvantage?

Believe it or not, there may really be a serious issue here.

Not even Dotty's own lobbyists and consultants can deliver a straight answer as to who and what they are. If they're casinos, then they need to abide by the same laws as other casinos. If they're bars, they need to obey the same laws as other bars. But until this week, they've been able to grow in this very murky legal environment where they make money on slot machines while escaping most of the legal regulation of casinos. And until this week, they've been able to enjoy the the more favorable regulations of grocery stores (with slot parlors near the entrance) without offering much more than slots.

So starting this week, everything changes... But is it fair?

There really are important issues to be resolved with "tavern" casinos, like Dotty's, that have skirted the law for the last 16 years. How many casinos, whether they be official or "incidental", should be allowed in a mostly residential neighborhood? Are local bars and other small businesses hurt by "taverns" like Dotty's? And are these "taverns" just more venues for gambling addicts to fuel their dangerous habit?

Unfortunately, this whole matter gets clouded when The Nevada Resort Association enters the scene and questions are raised over whether this new law fairly addresses the Dotty's problem, or if it's just another attempt by big gaming to snuff out competition.

Tuesday, January 11, 2011

Terror in Arizona: Are We Next? Or Will We Learn?



The real-life version of the crime that played out on the casino’s security cameras last month was as daring as anything dreamed up by Hollywood. But it would have made for a poor movie, as it was neither sexy nor sophisticated. And it presented little physical risk to the thief inside the Bellagio — one of many major casinos that tell unarmed security staff to stand down during armed robberies to avoid violence in a crowd.

To casino security experts, it also shows how casinos are vulnerable to theft at a time when other gambling crimes are rising in the poor economy.

Layoffs have affected many departments of the big casinos, including security and surveillance. Less security, experts say, may have motivated the Dec. 14 incident when an armed thief grabbed about $1.5 million in chips off a craps game in the predawn hours and got away on a motorcycle parked just outside. Moreover, Nevada law doesn’t require a guard by each entrance as they are in many other states or countries with casinos that refuse entrance to children and, in some cases, check IDs.

That’s why casino security consultant Willy Allison says the major Strip casinos, for all their high-tech bells and whistles to track crime, “have the worst casino security in the world.”

“You’ve got a better chance of walking into a hooker at the entrance of some of these casinos than a security officer,” said Allison, who organizes the annual World Game Protection Conference in Las Vegas.

That's from Liz Benston's chilling article in today's Sun about the shortcomings of casino security on The Strip. And remember, we are still most likely the most visited place on earth with over 37 million visitors per year. And Las Vegas Boulevard is the #1 attraction here. As it's been said many times before, we are such an attractive target for prospective terrorists that we can't afford to ignore this.

The video on top is from last month's infamous Bellagio robbery. Thankfully, no one was injured then... But what could have happened if someone with far more sinister motives had attacked? Or if someone with serious mental issues had just lashed out? Or if the robber had just decided to turn violent? Do we really want to see any of these scenarios approach real life?

But you know what? This scares me a little, but there's something else that scares me even more. I'm thinking about what The New Yorker's George Packer wrote on Sunday. (H/T Blog for Arizona)

[F]or the past two years, many conservative leaders, activists, and media figures have made a habit of trying to delegitimize their political opponents. Not just arguing against their opponents, but doing everything possible to turn them into enemies of the country and cast them out beyond the pale. Instead of “soft on defense,” one routinely hears the words “treason” and “traitor.” The President isn't a big-government liberal—he's a socialist who wants to impose tyranny. He's also, according to a minority of Republicans, including elected officials, an impostor. Even the reading of the Constitution on the first day of the 112th Congress was conceived as an assault on the legitimacy of the Democratic Administration and Congress.

This relentlessly hostile rhetoric has become standard issue on the right. (On the left it appears in anonymous comment threads, not congressional speeches and national T.V. programs.) And it has gone almost entirely uncriticized by Republican leaders. Partisan media encourages it, while the mainstream media finds it titillating and airs it, often without comment, so that the gradual effect is to desensitize even people to whom the rhetoric is repellent. We’ve all grown so used to it over the past couple of years that it took the shock of an assassination attempt to show us the ugliness to which our politics has sunk.

Again, I am reminded of what happened last year. A number of Harry Reid and Nevada Democratic events were on The Strip, including the November 2 victory party at Aria. At one point, some "tea party" group was looking to have an election night party there as well.



At some points, it seemed Nevada was precariously close to violent explosion as the Senate campaign was heating up. Even though the vast majority of Nevadans knew better and behaved better, there were always a few on the fringe who lashed out. Have we learned from the bitter campaign of last year and the horrific Arizona tragedy of last week? And are Clark County law enforcement and Strip casinos prepared to fend off someone intent on wreaking violent havoc on Las Vegas?



This morning, we discussed Nevada's lax gun laws and severely insufficient mental health resources. Add cracks in security and increasingly extreme and hateful political rhetoric, and we might have a recipe for disaster.

You know what scares me the most? Maven put her finger on it yesterday.

I’m not going to suggest that such correlations necessarily mean that self-described Tea Party supporters are more violent, or prone to commit or support violent acts against the government. But when there’s enough smoke, reasonable people might be forgiven thinking there is a fire somewhere.

Add to this, the influence of Fox News and similar media outlets, who have undertaken a deliberate campaign of mis-information designed to fan the flames of Tea Party mistrust - because it makes for great ratings, and even greater revenues for them, while their pundits enjoy even brisker book sales and public appearance ticket receipts. It isn’t ideology that drives that train - it’s money. [...]

I’ll tell you what the real tragedy of all this could be. That come a year from now, and nothing has changed. We’ll have ‘moved on’ to the next crisis. I don’t know about you, but I’m sick and tired of moving on before having made a good faith and BIPARTISAN attempt to fix what’s wrong.



Even with all the security in the world enveloping The Las Vegas Strip, we may still be in danger... Because of our own hot heads. Again, we must rethink how we do "politics" these days. Without a doubt, there are also issues of gun safety, mental health care, law enforcement, and much more that must be addressed at the local, state, and national levels, all of us "ordinary people" can do something about this... Now.

Steve Sebelius adds much needed sense to the debate raging on cable and on the net.

[N]either Angle nor Palin pulled the trigger on Saturday. Neither Angle nor Palin told Loughner to do what he did.

I wonder if perhaps people such as Angle and Palin — and anybody else who uses the rhetoric of violence in a political context — may want to consider that there are people out there who aren’t quite sane. That these people may interpret that language far more literally than the rest of us, and even act on it, with deadly results. This is especially true in a political and economic environment where desperation is high, reason is scarce and hatred is plentiful.

Following the shooting, the sheriff of Pima County, Clarence Dupnik, blamed the vitriol in the political arena for the tragedy, saying his state (with its anti-illegal immigration law) had become ground zero for that vitriol. “That may be free speech, but it’s not without consequences,” he said.

Indeed, our free speech does have consequences. And while those consequences should never be cause for us to circumscribe our rights, they should at least give us pause before we exercise them. This is America, after all, a democratic republic, where we settle our disputes with ballots, not bullets. Or at least, where we should.

And this is exactly what we must remember.

Tuesday, June 22, 2010

Casinos: It's Official, MGM Resorts Intl., Moody's No Longer So Moody on Vegas,

So before I come home later today, I want to catch up on some of the important gaming news I've been missing.

- It's official, MGM Mirage is now MGM Resorts International. The company says they did it to "better reflect the resort developer's global presence as it expands in Asia, the Middle East and elsewhere", but I'm wondering if this means The Mirage will be up for sale next. MGM Resorts denies it (wow, I need to get used to saying "MGM Resorts"), but we'll see. Whatever they want to call themselves, they still have $13 billion total debt. And while they are making progress in paying it off, they may need more cash on hand soon if they intend to fast-track more debt payments and/or buy Cosmopolitan to integrate it into CityCenter and/or restart stalled renovation projects for their other casinos.

- In some much appreciated good news for the gaming industry, Moody's has upgraded is overall outlook for gaming from "Negative" to "Stable".

"Although monthly gaming revenue by jurisdiction varies considerably, overall, U.S. gaming revenue was flat year-over-year in March and April 2010, and it appears the trend will hold for May," Keith Foley, senior vice president at Moody's, said in a statement. "While not a stellar performance, it's a marked improvement over the consistent -- and often substantial -- declines of 2008 and 2009. It also has favorable implications for gaming company operating profits, a majority of which comes directly from slot machine and table game revenue."

While Moody's is not yet all-out bullish on gaming (they later noted the continuing struggle to get more tourists to spend more money), it at least reflects Wall Street's re-embrace of the casinos after going so sour on gaming in 2008 and 2009.

- There's some increasing controversy over online hotel reviews and who's actually doing the reviewing. Apparently, paid casino promoters are now taking to sites like Expedia, Yelp, and TripAdvisor to shill for their clients and/or attack their clients' competitors. I guess the 'net is always prone to this kind of abuse. Whatever. The travel sites say they're cracking down on it, and the casinos deny that they pay people to do this kind of sh*t. And moi? Well, I have ways of determining which reviews are real and which aren't... And ultimately, it isn't these anonymous reviews that make my hotel decision for me.

- $1.2 billion in Fontainebleau contracts have been pulled... So construction will be resumed soon? Not so fast. Carl Icahn has said for some time that he wants to wait until Vegas stabilizes some more before he finishes F-bleau, so we can't be so sure this is a sudden change of heart.

- And finally, Steve Friess recently did an interview with Donny Osmond. He talks about the recent death of Marie's son, their return to The Flamingo, his "teen fame" in the 1970s vs. Justin Bieber mania today, and more. As always, Mr. Steve keeps it interesting!

And that's all for now. I may pop out one more blog post before I fly out of Long Beach this afternoon, and I promise to resume regular Nevada blogging later this week once I settle back into "life in paradise".

Monday, June 21, 2010

Foodie Thoughts: Fleur de Lys Closing, "Top Chef Masters" Fallout, & Everything Is California's Fault

Everything is California's fault. Everything, I tell you. F*CK YOU, CALIFORNIA!

If you follow ELV on Facebook, you know that a week ago he reported that Hubert Keller’s Fleur de Lys in Mandalay Bay will close in August, to re-open before the end of the year as a casual, small plates, world tapas bar concept.

The good news is: Hubert Keller (and his chefs and crew) will still be running the new restaurant, and are actively working on said concept and menu as we write this. [...]

The bad news is: This closing is yet another step in the dumbing down of Vegas restaurants — to fit a clientele who doesn’t want to pay for anything more elaborate than burgers, sliders, pizzas, and (god help us) more mediocre sushi. The creeping California casualization of American dining continues, and we fear this relentless trend towards small plates and grazing platters, represents a step away from quality and bodes ill for the future of good restaurants in our humble burg.

OK, let me put aside the Kleenex and bon bons to regain my composure. Deep breath, deep breath...

OK, I can speak again. I can understand Mr. ELV's frustration. Fleur de Lys was one of our more underappreciated fine dining gems. And did I mention Hubert Keller is a culinary god?

But hey, even culinary gods can only swim against the trend current for so long. While fine dining is far from dead and moiself will never stop stimulating the economy via the occasional outrageous food splurges, the fact of the matter is that many diners these days are foregoing the traditional fine dining experience for gastropubs, tapas houses, burger joints, and sushi dens. And foodie genius that he is, Hubert Keller saw this coming and decided to go with the flow rather than risk losing it all by keeping Fleur de Lys as is. And with the Mandalay Bay complex already served by the uber-chic Mix and lovely French-American Aureole, they pretty much had their "Fussified Frenchie Food" covered.

It's sad to see Fleur de Lys closing, but I intend to keep an open mind and see what becomes of Keller's new tapas concept.

And speaking of Mandalay Bay, everyone is still talking about the "Top Chef Masters" season finale. Was Jay Rayner being a dick? IMHO, yes. Is cooking and eating sustainably tough? Absolutely. But is it worth it? I think so. And is Rick Moonen doing what he can to practice what he preaches? IMHO, yes.

Again, it's all California's fault. Wait, so Jay Rayner is from Britain? Oh, OK. F*CK THEM! ;-)

And WTF is this sh*t? Oh, it's at Las Vegas Club. That explains it all.

The slogan on the front is "You catch 'em, we cook 'em," but good luck. The price of $2 per play isn't bad if you manage to grab one of the poor unsuspecting creatures within thirty seconds of depositing your cash and manipulating the claw, but unfortunately their are no consolation prizes (I was thinking a shrimp would be nice) and based on what an employee says in this local video, not many people win. If we hadn't just eaten and if the lobsters had been larger, I might have played, yet there was still something unsettling about it. If monkfish is referred to as the 'poor man's lobster,' then the crustaceans in The Lobster Zone must be the 'cheap, drunk Vegas tourist's lobster,' because I'm not sure who else would actually attempt catch one. I suppose it gets one closer to catching their own food than they otherwise would be, but when neither the animal nor hunter have much of a chance of winning, it just seems cruel for everyone involved. Anyhow, if you're really on a budget give it a whirl, and let me know how it goes. My bet, however, is that you're better of going to Red Lobster for the money, where you're also rewarded with delicious free cheddar biscuits!

If something is so bad that one praises Red Lobster for f*ck's sake, it's that f*cking bad. FAIL!

But this is NOT fail, kids. Our BFF Mike D from Tasting Las Vegas, along with Jillian from Frugal Foodie, made the big leagues when they were featured on KNPR's "State of Nevada" on Friday, when Mr. ELV and Mr. Max do their occasional delicious Friday (not really) hostile takeover of the show. It's good to see the food bloggers in this town get the recognition they deserve.

And finally, both Mr. ELV and Sage (Shawn McClain's ab fab restaurant at Aria) get the national recognition they deserve. Well, at least some things are still working out nicely in this town.

OK, I felt the need to catch up on all I've been missing since I left town. And did I mention everything is always California's fault? I need to get me out of this gawddamned hellhole. ;-)

Friday, May 28, 2010

Casinos: Encore Beach Club Is OPEN!

It's here! It's here! It's finally here, bitchez!



Encore Beach Club is HERE! And Surrender. And the newly remixed Switch.

Here are the deets, via The Sun.

The Las Vegas Strip today has another nightclub and adult pool to add to its growing list. Encore Las Vegas will open its Encore Beach Club and Surrender nightclub, just in time for the Memorial Day weekend crowds.

The $68 million pool-nightclub complex is replacing Encore’s porte-cochere, so those walking the Strip will be able to peek in on the action.

Opening festivities will begin when Surrender’s resident DJ Steve Aoki takes over the turntables and will continue through the weekend with musical guests Ne-Yo, Kaskade and LMFAO. The 5,000-square-foot Surrender nightclub will open to the outdoors as weather permits.

The 60,000-square-foot Encore Beach Club will be a 21-and-over pool complex. The pool will feature 26 cabanas, eight two-story, 350-square-foot bungalows, a restaurant and poolside blackjack and craps.

Sean Christie, who operates Blush Nightclub and Society Cafe, will operate both the pool and the nightclub. Wynn Design and Development Executive Vice President Roger Thomas is responsible for the design of both the Encore Beach Club and Surrender.

Hopefully soon, I'll have a chance to see it all for myself and give a better, more accurate assessment of it all. But so far judging from the pics and vids I've seen, I'm liking it. Everything looks so sexy and sumptuous and sensual and oh so luxurious.

I know the design, along with the whole entire pool day club concept, have generated some controversy. But for me, it's all a perfect fit.

Why? Well, why not? Las Vegas is the 24/7 fun party town... Or at least The Strip is. And we're already known for our more notorious pool day clubs Rehab @ Hard Rock. Why not let Wynn & Thomas glam it up with their own fabulous day-into-night luxury party spot? I'm all for it.

Score another WIN for Steve Wynn and Roger Thomas! :-)

Thursday, May 27, 2010

Casinos: More Techie Goodness

Yesterday, we took a look at some new, exciting slot technology coming into the casinos. Well, it looks like the casino floor won't be the only part affected by new technology. Cosmopolitan of Las Vegas gave a sneak preview of what's to come at this week's Gaming Technology Summit.

Cosmopolitan’s chief information officer, Marshall Andrew, said during a technology executive panel at Tuesday’s Gaming Technology Summit at Green Valley Ranch that the resort is using technology create a “wow factor.”

Andrew said people will have to wait for a public relations blitz for specifics, but he said the technology will focus in three areas: server-based gaming, mobile apps and in-room technology.

The property’s website, which will be launched in June, will detail the technology better, Andrew said.

Like its neighbors Aria and Mandarin Oriental at CityCenter, Cosmopolitan’s in-room technology will feature a central remote controlling all of the room’s devices, Andrew reluctantly shared.

“They are going to have more features and functions,” Andrew said of the Cosmopolitan rooms. “Aria kind of laid the groundwork. A lot of us went over there and stayed in the rooms to check it all out. We saw things that we liked, but we saw things that we could improve upon, and that’s what we’re working on right now.”


So a Cosmo guest will be able to turn on the TV, open the drapes, turn off the iPod stereo, and handle every other electronic device/equipment with just one remote control. WOW!

And there's even more hi-tech goodness awaiting us outside the casinos!

Harrah’s put its first app for a property on the market in February 2010. Ceasars Palace allows users to check property maps, make restaurant reservations, check out current events at the property and even dig into the Caesars Palace history with photo galleries.

The app has 588 ratings in Apple’s App Store, with an average rating of 2 1/2 out of 5 stars.

Lane said the company developed the app to help its customers make decisions on things like shows and restaurants while on the property.

“Most decisions with our guests happen on the casino floor. That’s where you have to reach them,” Lane said.

Along with the Caesars app, the Harrah’s technology team also created a mobile site where customers can check their players club point balances in real time, a mobile slot game called iSpin and an initiative Harrah’s is calling “textpress” that lets guests bypass the check-in process at Caesars Palace.

MGM Mirage recently rolled out some mobile apps of its own. During April and May, the company released property-specific apps for MGM Grand, Mandalay Bay, New York-New York and the Beau Rivage in Biloxi, Miss.

More are under way for MGM Mirage Las Vegas properties, company executives said. The apps do similar things as the Caesars Palace apps — guests can make restaurant reservations, navigate their way with property maps and watch previews of resident shows on property. It also lets customers access the property’s Twitter feed so they can see what others are saying about the resort.

All three Las Vegas property apps have a rating of three out of five stars in Apple’s App Store.


And now, MGM Mirage is upping the ante with its own "Vegas Reality" iPhone app:



OK, so not everyone is excited about MGM Mirage's new app. Hunter at RateVegas explained the limitations of augmented reality (AG), and why most tourists probably won't be interested in holding their iPhones in front of them. Oh, and the app only provides details on MGM Mirage casinos... Understandable, but a little frustrating if one was expecting to use this somewhere like The North Strip, where there's only one MGM Mirage casino (Circus Circus).

And with all these technological advances, we'll have to wait and see how tourists react. So far, Aria's "fully integrated room technology" isn't getting overwhelming rave reviews due to the constant glitches. If Cosmo and other hotels are hoping to go in this direction, it will be crucial for them to ensure that everything actually works.

Otherwise, the future looks bright for more geeky techie goodness coming to entertain us, comfort us, and inform us here in Las Vegas. :-)

Wednesday, May 26, 2010

Casinos: New Technology to Change Slot Playing?

So this week is the Gaming Technology Summit here in Henderson. All the big casino players are here to discuss new technology and how to bring it into the casinos.

For some time now, casino execs have been eyeing server-based gaming and its many possibilities. But now, it looks like the possibility is becoming reality.

Server-based gaming allows casinos to have slots connected through a network. It lets operators change themes, promotions, the amount that can be wagered and the hold at a touch of a few keystrokes.

CityCenter’s Aria paved the way for deploying server-based gaming in newly built casinos. Almost half of the Aria casino floor is server-based, totaling about 900 games from manufacturers International Game Technology and WMS Gaming. The floor will have 100 percent server-based gaming by the summer as more manufacturers receive regulatory approval on their games.




So why is this so big? Why is everyone so excited? Here are the facts.

Executives say one of the perks of server-based gaming is it attracts younger customers who are looking for more stimulation on the casino floor. Some server-based games allow users to play up to four games at a time, which is becoming increasingly popular among customers already familiar with using several mobile devices at the same time.

“If I can win three games simultaneously, that is better than winning one,” Saenz said.

Executives said regulators, operators and most importantly, customers, need to be comfortable with the technology. When introducing new technology, it is important not to greatly change games customers already are loyal to, said Bally Technologies Vice President of Strategic Development Walt Eisele.

“The revenue still comes from the machine so you don’t want to mess with that too much,” he said.

The next step will be training third-party developers to make applications for server-based games, executives said. The technology would be similar to how third-party applications work on the iPhone. Saenz said IGT will have a booth at this year’s Global Gaming Expo devoted to helping developers create such applications.


Now yes, there are many long-time players who are uncomfortable with the new technology. Hell, there are still some players who hate ticket-based slot machines! However, they're only a small portion of the market.

What casino execs and slot manufacturers see is the still untapped market of younger players who aren't interested in just seeing lines spin. Players my age are now used to advanced, multi-dimensional, interactive video games that can be played on every console from XBox 360 to iPod Touch. These new server-based slots open up the possibility for far more new, sophisticated games like the new Sex And The City video slot machines.



Oh, and by the way, games like the Sex And The City slots are ways to attract older players to the new server-based machines in addition to younger players.

But do they pay well? Can pay schedules be tampered with? Can the odds be changed? Obviously, there are legitimate concerns about these new machines. That's why regulators like the Nevada Gaming Control Board has taken its time to examine this new technology to properly regulate it.

Still, this new technology holds some real promise in bringing new games to the casinos... And more players into the casinos as well!

Wednesday, May 12, 2010

Don't Get Caught in a Bad Hotel... Or How Culinary Can Use New Tools to Fight Station

Take a look at what SF Pride at Work is doing...



This thing is quickly going viral, and just in time to catch tourists like moi considering our San Francisco PRIDE plans... Including hotel reservations. Paul Hogarth explains more on the value of this new kind of "viral video protest" at Beyond Chron (an excellent SF blog):

The video was fun, but how do we know it will be effective at getting people to boycott the Westin St. Francis?

A friend responded with this point: “It will be seen by a lot more people than your average - ‘what do we want and when do we want it’ protest - because as much as I am pro union and will support boycotts, I don’t forward info on every single boycott because seriously, nobody would read my reports if I did. I saw the YouTube video and then saw that the Palace Hotel was part of the boycott list and canceled my reservations for tea at the Garden Room. I probably would not have found out about the boycott if it wasn’t entertaining enough to go viral, and I definitely wouldn’t have posted it in my [Facebook] status and then five of my friends probably wouldn’t have posted in theirs …”

In the 21st Century, people spend a lot of time online – and a huge amount on Facebook, talking to their friends and procrastinating. A fun YouTube video can go viral, because you’re reaching people where they’re at – and it’s easy for them to post it on their page.

As far as getting “bang for your buck,” Pride at Work hit a home run. They didn’t have to mobilize a huge number of people, the whole action took 5 minutes and nobody got arrested. How many times can you say that – and get that amount of media coverage?


Could Pride at Work have done a similar direct action without YouTube or Facebook? Of course, but no one would have seen it – unless they happened to be in the Westin St. Francis at the time, or activists were lucky to get reporters present – never a sure thing.

And while onlookers in the hotel appeared supportive (activists handed out flyers during the flashmob about the hotel boycott), it can be difficult convincing an apolitical tourist who already paid for their room to check out of the hotel in solidarity. By broadcasting it on YouTube and generating a viral campaign, more will hear about it and not stay there.


How very, very true. And you know what? It applies very much to LAS VEGAS, too!

Think about it. The Fertittas are trying hard to prevent "an inconvenient bankruptcy" from toppling their gaming empire, while Boyd Gaming is licking its chops to grab as many Station properties as possible when "PropCo" (amd maybe even a bit of "OpCo"?) goes to the auction house. Both companies are notorious for being anti-union, and Culinary 226 so far has had no luck at organizing any casinos run by either company.

Culinary now has an active organizing campaign running, but all I've seen from it so far are two RTC bus stop ads: one at Green Valley Parkway & the 215, and one at St. Rose Parkway & Paseo Verde. Oh, and apparently there's a YouTube page that I didn't even know about until five minutes ago.

Now I'm sure there's plenty of negotiating going on inside, and there's probably more to come. Culinary has earned its reputation as a true Nevada political power player for good reason.

However I just think there's even more they can do, especially when it comes to winning in the court of public opinion... And getting the public to choose union hotels over anti-union hotels when staying here in Vegas. [I'm sure MGM Mirage, Harrah's, and Wynn would really appreciate this as well. ;-) ]

I'm wondering how involved Sleep With the Right People and Pride at Work are with the Station fight. If they aren't yet, I hope Culinary reaches out to them. There are millions of LGBTQ tourists who come to Vegas each year, and they should know to "sleep with the right people". Oh yes, and Culinary should know about these new tricks they should put up their sleeve so they can reach out to millions more Vegas visitors and let them know where to go (and where not to go).

All those tourists "voting with their dollars and their feet" would really get Station and Boyd to pay attention.

Tuesday, May 11, 2010

Pool "Day Clubs": To Do Or Not to Do? Here's My Take.

This is the question. Today's Sun has not one, but two stories on "day clubs".



Obviously, the concept of turning a simple casino pool into a club has proven to be quite lucrative... But can it also be dangerous? Last year, Harrah's had to shut down Rio's Sapphire Club pool over alleged prostitution. Eight arrests were also made last summer at Hard Rock's famed (or is it infamous?) Rehab pool over drug and prostitution charges.

So is this going too far? Are these glorified "frat house pool parties" going too far?

NO.

Here's why. This is VEGAS, baby! Come on, folks, this is the place to party. This is the place to get wild and crazy. This is the place to live it up, day and night, 24/7.

If you can't get your freak on at Rehab, where else can you go on a Sunday... When many of my neighbors here in Henderson are in the church and/or at the park?

But about the drugs? And the hookers? As we've talked about before, I'm a civil libertarian by nature. Personally, I wouldn't mind Nevada legalizing prostitution and most drugs. And as long as the drinking, hooking up, getting high, and other assorted debauchery are being kept in an enclosed pool complex separate from the pool where the other hotel guests (including families with kids), what's the problem?

Again, fast times and crazy living are what brings so many millions of tourists to Las Vegas each year. Why ruin this naughty magic by making us some "(not so) glorified San Diego or Phoenix or Salt Lake City"? Let the day clubs open, and let the adults play in the pools!

Wednesday, May 5, 2010

Casinos: Station Gets a(nother) Lifeline

Well, so much for us knowing the final fate of Station Casinos sooner rather than later...

Station Casinos is getting a little extra time as the exclusive company or group to draw up a reorganization plan in its $6.6 billion bankruptcy case.

U.S. Bankruptcy Court Judge Gregg Zive gave the Las Vegas casino company until mid July to exclusively put forth a plan on how to emerge from its debt.

His approval came after creditors and independent lenders withdrew opposition to an extension. Attorneys for the groups initially wanted the exclusive right to draft a plan to end May 24 so they and others could prepare their own bankruptcy plan.

Zive had been leaning toward giving Stations the extension, saying, “I’m not sure why we should open the door to that type of distraction,” referring to others who might submit rival plans.


But issues remain over Station's proposed auction and PropCo/OpCo divide.

Deutsche Bank and JP Morgan hold a $2.475 billion mortgage on four of Station’s most valuable properties: Red Rock Resort, Sunset Station, Boulder Station and Palace Station. They and Station Executives Frank and Lorenzo Fertitta would take over those four casinos.

Another 13 casinos would be put up at an auction.

The Fertittas and the banks have put together a proposal to bid $772 million for those 13 casinos. But other companies could outbid them.

The judge also allowed the lenders and creditors additional time to take depositions from two more officials. Zive will hear additional arguments Wednesday on the bidding procedures but said he won’t rule until later hearings set for May 26-27 in Reno.

Lawyers for Station Casinos objected to allowing more depositions. Thomas Kreller, attorney for Station Casinos, said it gave the bondholders, creditors and lenders 50 reports and allowed them to take depositions from five officials.

But lawyers for the creditors and others told Zive they have not been able to get all the necessary information to assess the proposed reorganization plan. They argued that they need to know how the “stalking horse” plan was selected and want to know the value of such things as customer lists and land.

“There is no evidence on the value of the excluded assets,” said Eric Winston, attorney for the creditors’ community.


And apparently there is also an emerging problem with Texas Station, as the Fertittas want to auction off the casino but NOT the land underneath it. So this ain't over yet, not by a longshot.

So far, it seems Station has been lucking out in getting the judge to mostly agree to what the Fertittas, Colony Capital, Deutsche Bank, and JP Morgan Chase want. We'll have to see if their luck will ever run dry in this case.

I just wonder how much of a chance Boyd really has now in getting any of these casinos...

Thursday, April 29, 2010

Casinos: Wynn Resorts Makes $0.22 Q1 PROFIT, Beats Wall Street Estimates, Shows Improving Vegas & Macau Numbers

This just in from The Wall Street Journal:

The performance shows the Las Vegas market is improving as Wynn's revenue there grew 9.3% and the operating loss narrowed. In the Chinese gambling enclave Macau, profit and revenue climbed 82% and 32%, respectively. [...]

For the latest quarter, Wynn reported a profit of $27 million, or 22 cents a share, compared with a year-earlier loss of $33.8 million, or 30 cents a share. The latest quarter included 4 cents of charges.

Net revenue climbed 23% to $908.9 million.

Analysts estimated earnings of 14 cents on revenue of $849.8 million, according to a poll by Thomson Reuters.

Operating margin rose to 12.6% from 3.7%.

Overall casino revenue, which provided three-quarters of the total, climbed 28%, while food and beverage revenue increased 2%. In Las Vegas, casino revenue grew 19% while non-casino revenue slid 1.4% as hotel revenue declined 8.8% and food and beverage revenue slipped 1%. The occupancy rate edged down to 89.4% from 89.5%.

And there's even more good news in the internals. The Las Vegas ADR was $203. Las Vegas REVPAR was $181. Table game win per unit per day was $6,459. Unfortunately, all of this wasn't enough to prevent a $34.5 million loss for Wynn Las Vegas (including Encore)...

But Macau's earnings more than offset it! Obviously, Wynn's formula for profit these days now includes a heavy dose of Macau action. Growth there is gangbusters, and it's becoming increasingly clear why they're so excited about building Wynn Cotai as early as next year.

So it was Macau that saved Wynn's day in the end... But Vegas is now starting to look better, and Wynn is looking all the better for it.

Casinos: Another Day, Another Hot Mess in Station Bankruptcy Case

Why are we even surprised any more? Station Casinos is under fire for its now controversial plan to emerge from bankruptcy. It's been in a heated war of words with Boyd Gaming lately over the proposal.

In court papers filed Monday, attorneys for Station charged that Boyd has been meddling in the case -- claiming to be a creditor but actually acting as a potential buyer for Station. Station specifically objected to Boyd's insistence that its representative attend depositions in advance of the key reorganization hearing set to begin May 4.

"Boyd had sought to act as the stalking horse bidder in the auction ... but was not successful in negotiating for that position," Station's filing said. "As a result, Boyd’s true status is that of a disappointed bidder for the stalking horse position and a potential competing bidder in the ultimate auction.

"Equally important, Boyd is the debtors’ primary competitor, which means that regardless of the outcome of the auction process, Boyd has every incentive to try to disrupt the debtors’ efforts to preserve and maintain their business operations in a manner consistent with the debtors’ place at the top of the locals gaming market. Thus, Boyd’s posturing has nothing to do with its holdings of insignificant amounts of out-of-the-money bonds and everything to do with Boyd’s effort to try to gain access to debtor’s confidential documents and to attend the depositions in order to disrupt the bankruptcy process and the debtors’ business and obtain sensitive competitive information that it would then use to the detriment of the debtors’ estates.

"Boyd clearly views this as a 'free shot' to harm Station Casinos and gain a competitive advantage; such an agenda is not an appropriate use of creditor standing in these cases and should not be permitted," the Station attorneys charged, adding Boyd has failed to turn over documents related to the case sought by Station and Boyd violated a non-disclosure agreement by working directly with OpCo lenders on competing restructuring proposals.

"From the outset of these proceedings, Boyd has sought to delay, hinder, and obstruct the debtors’ reorganization, obtain access to Station Casinos’ valuable trade secrets, and harass Station Casinos' management. Simply put, Boyd has acted strategically to hurt Station Casino’s reorganization in order to further its own competitive interests. And, if at all possible, Boyd would like to poison the well for other potential bidders for OpCo, so that Boyd can obtain the OpCo assets at fire-sale prices," Station charged in its filing.

And not to be outmatched by Boyd...

But attorneys for Boyd, in denying allegations the company breached the non-disclosure agreement, said: "Boyd Gaming is a party whose involvement in these Chapter 11 cases as both a creditor and bidder already has brought substantial benefit to the debtors' estates, including by increasing the stalking horse bid."

Boyd attorneys also complained that Station attorneys have been making "vastly overbroad" discovery requests for Boyd documents.

"The majority of the debtors' document requests are directed to Boyd Gaming's development of its previous proposals to purchase the debtors' assets," Boyd argued. "Indeed, the debtors even have requested Boyd Gaming's competitive plans on competing with PropCo in the future.

"These topics -- what Boyd Gaming was willing to pay for the debtors' assets in the past, how it arrived at that decision and how Boyd Gaming will compete with PropCo in the future -- bear no relevance whatsoever" to current issues in the case -- amendments to the PropCo master lease between Station and lenders, Station's request that its exclusive period to file reorganizaztion plans be extended and the OpCo bidding procedures, Boyd's filing said.

"Rather, such demands only are designed in an attempt to gain insight into the amount that Boyd Gaming may be willing to bid in the future for the debtors' assets in an auction process in which Boyd Gaming will be bidding against the debtors' insiders," Boyd attorneys said.

And now, the bondholders are raising hell over the proposal:

Bondholders and other unsecured creditors, independent bank lenders and competitor Boyd Gaming Corp. have been attacking the Station plan as favoring the insiders and are likely to continue doing so during bankruptcy court hearings in Reno May 4 and 5. Billions of dollars are at stake in the case as the Fertitta/Colony proposals value the company at about $2.572 billion, while its debts and liabilities were last reported at $6.6 billion.

In a filing Monday, the bondholders asked Judge Gregg Zive to allow competing plans of reorganization to be filed so that creditors can recover more money than what is proposed by the Fertittas, Colony Capital and key lenders Deutsche Bank and JPMorgan Chase Bank.

"The debtors have been given several chances to put forth a good faith plan that benefits all creditors to whom they owe a fiduciary duty. The debtors have not used those opportunities to make progress through substantive negotiations with the vast majority of Station Casinos' creditors. Rather, they have offered sham auctions, one sided 'compromises' and conclusory, opaque rationales for their proposed actions," the bondholders' attorneys argued.

For instance, they charged: "Station Casinos has agreed to give the Fertitta brothers the opportunity to buy all remaining Station Casinos assets for a set price that all third-party bidders are required to top despite the fact that third-party bidders cannot buy the assets that are being stripped away from Station Casinos and handed to reorganized PropCo."

The controversy is swirling around Station's proposal to split up the 5 "PropCo" properties (Palace, Boulder, Sunset, Red Rock, Wild Wild West/Viva, and the Las Vegas Blvd./Cactus Ave. land) from the "OpCo" properties (everything else). PropCo won't be auctioned off while OpCo will... And a consortium of the Fertittas, Colony Capital, and JP Morgan Chase would be allowed to be the "stalking horse bid" in OpCo. And many of the technological tools needed to run OpCo would actually be included in the PropCo holdings. So when considering this, it becomes easier to see why the bondholders and Boyd are upset over Stattion's proposed plan to emerge out of bankruptcy.

It will be interesting to see what the courts finally think about this. Will Station be allowed to get away with it? Or will Boyd end up being in for a really sweet deal?

We know the Fertittas now want to keep everything together in Station world. We also know that the folks at Boyd are licking their chops over Station's assets. And in the end, it looks like we will ultimately still be dealing with a near duopoly on the Vegas locals' casino market. So the more things change with Station, the more they stay the same with locals' casinos?

Friday, April 23, 2010

Casinos: CityCenter Makes Conde Nast Traveler's "Hot List", Harrah's to Sell Rio?, Boyd Throws Station Reorganization Plans into Limbo

Visit msnbc.com for breaking news, world news, and news about the economy


Yep, you heard me right... MGM Mirage finally got some good news for CityCenter. Conde Nast Traveler has put both Aria AND Mandarin Oriental in its "2010 Hot List"! Apparently the rooms, the art, the restaurants, and the green touches all make Aria a winner in its book (even if Vegas Tripping and Rate Vegas' TWHT weren't as impressed initially). And since Conde Nast Traveler is quite revered as an authority on luxury travel, perhaps it can help encourage more of those high-end travelers needed to come and help CityCenter turn a profit?

Meanwhile in Harrah's territory, they may be considering (AGAIN!) selling The Rio. But unlike past rumors, which were just glorified gossip, this time it's getting press in Bloomberg Businessweek.

Harrah’s Entertainment Inc., the casino company owned by Apollo Management LP and TPG Inc., is seeking bids for the Rio All-Suite Hotel & Casino in Las Vegas, people with knowledge of the situation said.

Starwood Capital Group LLC and Colony Capital LLC are among the companies that are weighing bids for the resort, said the people, who declined to be identified because the talks are private. Some bids value the Rio at about $500 million, two of the people said.

Harrah’s, the world’s biggest casino company, is exploring a sale of the off-Strip property two months after buying Planet Hollywood Resort & Casino. Las Vegas is coming out of a two-year slump that took casino operators to the brink of bankruptcy. Chief Executive Officer Gary Loveman cut Harrah’s debt by $4.2 billion in 2009 by offering creditors new bonds at a discount. He extended maturities on another $5.5 billion this year.

Dave McKee has more on this, including his thoughts on who might be the early favorite to snatch The Rio. He thinks Colony Capital (which currently owns The Las Vegas Hilton, as well as a chunk of the possibly-soon-to-emerge-from-bankruptcy Station Casinos) is the frontrunner, followed closely behind by Starwood Capital Group (which currently owns Sheraton, Westin, St. Regis, and a number of other hotel brands). However someone in the comments there mentioned the constant rumor that Penn National Gaming (which came close to buying the bankrupt Fontainebleau, which ended up in Carl Icahn's hands) may get it, which is always a possibility considering how badly it wants to enter the Las Vegas market.

So will The Rio be banished from Planet Harrah's? We don't really know yet, since the company isn't saying anything... Yet. But since Harrah's has already tried multiple times to sell The Rio, I wouldn't be surprised if they finally let it go this year.

And finally, speaking of Station Casinos, its long, hot mess of a bankruptcy isn't over quite yet... Boyd Gaming and the unsecured creditors are challenging the reorganization plan! They specifically object to the proposed PropCo/OpCo plan to let Station keep Red Rock, Sunset, Palace, and Boulder along with the proposed "Viva" site and the Las Vegas Blvd/Cactus Ave. plot of land while putting all the other assets (or OpCo) into "auction". Boyd and the creditors are claiming that the "auction" process and PropCo/OpCo divide put Station and Colony at an unfair advantage over everyone else (including Boyd, which badly wants to buy as much of Station as the Nevada Gaming Commission will allow).

Oh, and a group of independent lenders is also objecting to Station's plan.

"By excluding OpCo assets of significant value, as well as the PropCo assets, from the proposed Station Casinos sale, the debtors are not allowing their assets to be shopped as their fiduciary duty requires," Boyd charged in court papers.

Boyd also noted that its offers to purchase Station assets in February and December 2009 were not accepted. The last offer for the entire company was for $2.45 billion.

"We now know that the debtors were only interested in pursuing an insider transaction at the expense of their creditors' interests in breach of the board's fiduciary obligations," Boyd's filing said. "The court should not sanction the debtors' ongoing blatant disregard for the creditors' interests by approving these one-sided bidding procedures."

Similar objections were filed Wednesday by the case's Official Committee of Unsecured Creditors, representing bondholders and others owed some $2.5 billion. The unsecured creditors charged that the Fertittas and Colony Capital have arranged to acquire a 50 percent interest in the PropCo properties at a 15 percent discount while arranging a lucrative 25-year management deal for those properties.

"These series of transactions are structured, using New PropCo and Fertitta Gaming, to camouflage the conflicts of interest and self dealing that are at the heart of the ... plan," attorneys for the unsecured creditors charged.

"The proposed restructuring is simply a deliberate campaign by those controlling Station Casinos to benefit themselves, its equity owners, at the expense of Station Casinos' creditor constituents," the creditors charged.

Another objection was filed by a group of independent lenders, which also complained that assets crucial to the operation of the OpCo casinos would not be included in the OpCo auction.

"From the perspective of the OpCo creditors, the process makes no sense: It's like selling KFC without the Colonel's secret recipe, or selling Coke without the formula, because the seller fails to capture the full value of the enterprise and the buyer acquires a business crippled without its competitive advantage," the lenders charged.

So will all their objections be enough to derail the Fertittas' plan to take Station out of bankruptcy? We'll have to wait and see.

Tuesday, April 20, 2010

Casinos: MGM Mirage to MGM Resorts International? And Are MGM's Fortunes Really Looking Up?

So MGM Mirage is about to become MGM Resorts International? If the shareholders approve, MGM will have a new name.

The Strip casino giant told shareholders the proposed name reflects the company's current vision and future growth. MGM Mirage, through its MGM Hospitality Division, has plans for nongaming hotel brands in several international markets, including China, India and the Middle East.

The company's first international venture was the MGM Grand Macau which opened in December 2007.

"MGM Resorts International better represents our company's growing global presence," company Chairman and Chief Executive Officer Jim Murren told employees this morning. "As a truly international company, our name should clearly reflect that.

"This is a significant step and we don't take it lightly," Murren said.

It also reflects what would happen if The Mirage were no longer part of MGM's casino collection. Now The Mirage's earnings actually held up fairly well in Q1 2010, especially compared to other MGM casinos. So in the short term losing Mirage makes no sense... But what about the long term?

Let's face it, both the sale of TI early last year and the opening of CityCenter late last year shifted MGM's center of gravity further south of Flamingo Road. With the exceptions of The Mirage and Circus Circus, all other MGM casinos are now south of Flamingo: Bellagio, Aria, Monte Carlo, New York New York, MGM Grand, Excalibur, Luxor, and Mandalay Bay.

MGM is also looking to possibly buy Cosmopolitan when it opens to integrate it into CityCenter. And in order to do this, MGM will need to raise capital... But can it?

And is more trouble on the way? Jim Cramer trashed MGM (while talking up Wynn Resorts in advance of Encore Macau opening tomorrow) yesterday on CNBC...



But Goldman Sachs (yes, them... And I'll get to them tomorrow.) likes what it's seeing with MGM Mirage.

Shares of MGM Mirage rose on Tuesday as a Goldman Sachs analyst said the casino operator's stock could move 25 percent higher on momentum in Las Vegas and strength in Macau.

Analyst Steven Kent said in a client note that competitors Las Vegas Sands Corp. and Wynn Resorts Ltd. will be reporting their first-quarter results shortly, with both likely to indicate that business is improving in Las Vegas and Macau remains solid.

Macau, the only place in China where gambling is legal, has reported strong gaming revenue gains since last summer. The same cannot be said for Las Vegas, which has been hindered by the housing downturn and economic slump. But signs are beginning to emerge that the U.S. economy is improving, which has led some consumers to increase their discretionary spending at casinos.

Kent anticipates that solid quarterly results from Las Vegas Sands and Wynn will boost investor confidence and bump MGM Mirage's stock higher.

The analyst added Las Vegas-based MGM Mirage to his Conviction Buy list, which indicates top stock picks.

So perhaps things are really looking up for MGM Mirage, possibly soon to be MGM Resorts International? Perhaps, so. No matter what they want to call themselves in the future, their future success depends on the return of consumer spending. And if consumers are feeling better enough about their personal finances to start spending again, MGM will be back.

Wednesday, April 14, 2010

Taking a Look at MGM Mirage's Preliminary 2010 Q1 Earnings

So today, MGM Mirage gave us a sneak peek of what to expect when it releases its full Q1 earnings report in the next couple of weeks. Here's The Wall Street Journal's rundown.

MGM said it expects a 22-cent first-quarter loss, swinging from a 38-cent profit a year earlier, though both contained one-time items.

Excluding a large gain from extinguishing debt and a smaller impairment charge, the loss would have been 31 cents a share. Analysts, who typically exclude one-time items from their view, were expecting a 21-cent loss, according to a survey by Thomson Reuters.

The company also said revenue would likely be $1.46 billion, above the average analyst estimate for $1.43 billion. The first-quarter projection represents another year-on-year sales slide. Total casino revenue is expected to be approximately 5% lower than the prior year, an improvement from the fourth quarter's 11% drop.

MGM said that its revenue-per-available-room, a key lodging metric, on the Las Vegas Strip fell 8% from a year earlier, with occupancy of 85%. The tourist haven has struggled in the recession as gamblers either quit to save money or placed their bets at casinos closer to home, while corporations are avoiding taking business trips to such a flashy locale.



So MGM Mirage's early results look mixed compared to Wall Street expectations, but Wall Street is looking fairly negatively so far. MGM stock closed about 5.6% lower in after hours trading (though off its lows from about two hours ago), which means it will likely open much lower when the New York Stock Exchange (NYSE) reopens for trading tomorrow morning. What's all the commotion about?

As the analysts were saying on that CNBC clip I posted above, there's still concern over consumer spending... And apparently rightfully so, considering MGM's Las Vegas Strip REVPAR (revenue per available room) slid 8% to $94. However MGM's average room rates actually rose to $111 per night while occupancy remained stable at 85%, which was especially quite the feat considering Aria being a drag at only 63% occupancy.

And that's just it, CityCenter's first earnings report was a dud. MGM Mirage is expecting to report a $255 million operating loss on CityCenter in Q1 2010. However, it is still quite young and MGM is still expecting better results later in the year as summer tourist season approaches. And with overall Vegas tourism and gaming numbers improving in late 2009 and continuing this trend so far in 2010, there's certainly reason to hope.

So what should we take out of the early MGM Mirage numbers? It's still looking tough out here in Vegas, but things aren't looking so scary any more. And hopefully when the Las Vegas Sands, Harrah's Entertainment, and Wynn Resorts numbers come out, we'll get an even better picture of the overall financial health of The Strip.

Wednesday, March 17, 2010

Casinos: Rumjungle at M-Bay Files for Chapter 11, Encore's Switch Beach Club Pics Leaked, MGM Mirage & Perini Fight Over CityCenter, & Some Good News for MGM Mirage

- Yikes! Things aren't looking pretty at Rumjungle these days. They've filed for Chapter 11 Bankruptcy, claiming that MGM Mirage is trying to drive them out of business. Mandalay Bay just opened its new "eyecandy" lounge near the casino, and Rumjungle is claiming this violates their contract with MGM for Rumjungle to be the only nightclub at Mandalay. However, MGM counters that they owe $1.1 million in unpaid rent.

- Meanwhile, MGM Mirage actually gets some good news today. Malaysian casino operator Genting Malaysia Bhd. is buying another $18 million in MGM debt, which CEO Jim Murren is feeling good about.

- However, MGM Mirage still has to deal with Perini's move to try to impose a lien on CityCenter over $492 million in unpaid construction costs. MGM counters that the $492 million claim isn't accurate and The Harmon's construction defects result in a larger counterclaim for them. This should be a fun one to watch in court.

- Meanwhile on the other end of The Strip, more photos have been leaked for Encore's new Switch Beach Club and Surrender nightclub set to open Memorial Day Weekend. There's now a great debate over whether the club is edgy or trashy. I personally think the pool looks a little dull so far, but I have a feeling the real deal will glam it up some more... Especially since Surrender is looking quite promising!

- And finally, back to MGM Mirage... And what the hell is this??!! Are they actually inviting group orgies (on the cheap) to Luxor? Whoa, nelly! I guess this will be the new place to find a way to get laid FAST... And many times over... And still have some change left over to toss in the penny slots. Go figure. Only in Vegas. :-p

Tuesday, March 16, 2010

MGM Mirage Strikes Back at New Anti-Reid "Swift Boat Ad"

After news broke on Rethuglican smear master Floyd Brown's new "Swift Boat-Willie Horton" style ad trying to accuse Harry Reid and MGM Mirage of supporting "slave labor" in Dubai (HUH??!!), MGM Mirage is now striking back.

Nevada's largest private employer is lashing back at attack ads aimed at linking Senate Majority Leader Harry Reid to alleged exploitative labor practices in Dubai in the United Arab Emirates.

Lawyers for resort giant MGM Mirage say claims in the ads are "false, offensive and defamatory" and called on the creators to retract the commercials, posted online at www.exposeharry.com and scheduled to run on television this week in Las Vegas.

Oh yes, and did I mention these "Expose Harry" California carpetbaggers (they're based in San Diego County, by the way) are also "birthers" who continue to claim that President Obama is supposedly "illegitimate" because he's supposedly not a "natural born citizen"? Oh yes, it gets crazier. No wonder why this ad stunk.

"This doesn't really stand up to tests of reason. It is a big stretch," said Joseph Valenzano, an associate professor in the communications department at University of Nevada, Las Vegas who specializes in political rhetoric.

Valenzano said the labor ad is a success in that it prompts voters to think of Harry Reid, slave labor and CityCenter as being associated.

But it fails for two reasons, he said.

First, it doesn't establish any clear connection between the concepts other than mentioning them in the same ad. Second, the issue of alleged labor abuses in Dubai has nothing to do with how voters in Nevada will decide who to support in the upcoming election.

"This ad is designed for shock treatment," Valenzano said.

As the ad percolates in the public discourse it will lose effectiveness as voters realize the implied connections between Reid and Dubai labor practices are suspect and that nearly every Democratic and Republican politician in Nevada supported CityCenter because it was credited with creating thousands of new jobs during the greatest recession in state history, he said.

So are all our elected officials, Democrats and Republicans, now guilty of supporting "slave labor" because they supported the completion of CityCenter? Would Nevada have been better off if CityCenter failed, Nevada's largest employer collapsed, and Nevada's economy slid into another Great Depression?

Obviously, these California carpetbaggers know nothing about Nevada and how our state works. They shouldn't attack Harry Reid like this, they shouldn't attack MGM Mirage like this, and they shouldn't bash all of Nevada like this. These "Swift Boaters" just don't know yet how this crap will come back to bite them (and help reelect Harry Reid this year).

Monday, March 8, 2010

Casinos: Pity Poor Prive? Harrah's Is After Them.

And the hot mess that is Prive/Living Room at PHo just keeps getting messier.

The new owner of the Planet Hollywood resort in Las Vegas has been pressuring the bankrupt Privé and Living Room nightclubs there to either pay their past-due rent and expenses or vacate the premises.

Owned by Miami nightclub company the Opium Group, Privé and Living Room filed for Chapter 11 bankruptcy protection Nov. 11 in Florida.


Wait! Hold on a sec. We're trusting an entity called "The Opium Group"? Seriously?

OMG, carry on...

Extra security was hired by Planet Hollywood for the clubs after a scandal last year in which the clubs were temporarily closed for numerous violations of Clark County and Nevada Gaming Commission violations.

In a court filing last week, Harrah's Planet Hollywood subsidiary said these included instances where:

--Privé personnel removed inebriated patrons and left them unattended in the Planet Hollywood casino in various states of consciousness

--Privé patrons used or were under the influence of controlled substances while at the club

--Privé patrons alleged Privé employees physically and sexually assaulted them

--Privé was cited by Clark County Department of Business License officials for allowing topless and lewd activity; and for failing to cooperate with agents

--Privé allowed minors to enter the clubs and served them alcohol

The Gaming Commission initially sought to fine Planet Hollywood's then-owner, OpBiz, $750,000, but that was later reduced to $500,000.


Remember all that? It was just last year. And apparently, the fun hasn't stopped just yet!

OpBiz then modified the lease with Privé, requiring the club owner to re-pay OpBiz toward the fine with a payment of $125,000 due last June and five monthly payments of $50,000 after that.

Harrah's said in court papers that Privé is in default on its lease because it has made just one of the $50,000 payments; has failed to reimburse Planet Hollywood for $12,388 in extra security costs; has failed to pay all the rent due for January, February and March; and has allowed construction liens totaling $1.433 million to pile up against the property.

Court records indicate Privé has been paying about $85,000 per month in rent.


Oh my! As I said earlier, this really looks like a hot mess now. Just what was OpBiz thinking it'd get into with these folks?

They served alcohol to underage kids. (And btw, what were they doing in the club in the first place??!!) They threw out severely drunk patrons and left them to fend for themselves. There were drugs all over the place. And oh, let's not forget about the sexual and physical violence.

Real klassy.

I'm just wondering why Harrah's even wants them to stay. Or hey, maybe this is part of an effort to rid the new PHo of all the Prive psychodrama. I may not always see eye to eye with the world's largest gaming company, but in this instance I can see why they're wondering why it's worth it to keep having these wacko deadbeats in their newest casino.

Wednesday, March 3, 2010

Casinos: More Station-Boyd Drama! Oh, and Culinary 226 Still Isn't Keeping Its Mouth Shut, Either.

Yay! Happy b-day to me, I get to laugh at more Station-Boyd gaming. The Fertittas may have thought they were safe when they struck an agreement with their creditors last month to emerge out of bankruptcy wholly intact, but I guess Boyd Gaming thinks differently. This is what they said when they announced narrower losses than expected in their Q4 2009 earnings report.

During a conference call with investors and analysts today, Boyd executives reaffirmed the company’s commitment to acquiring Station Casinos’ assets and discussed the company’s view of the current condition of the Las Vegas locals market. [...]

“This offer stands and we are actively pursuing these assets,” [Boyd President & CEO Keith] Smith said. “We believe we can offer the greatest possible value to the majority of Station’s creditors. There is no one who is in a better position to manage those assets properly.”

And I guess there's still an opening with Boyd, especially with creditors still objecting about the Fertittas' spending habits of late... And even U.S. Bankruptcy Judge Greg Zive asking his own questions about possible overbilling.

U.S. Bankruptcy Judge Greg Zive told lawyers Tuesday he would look for overbilling and questioned expense accounts. He approved $12 million in interim fees and expenses for law and accounting firms.

The judge noted that progress has been made in an agreement with key lenders and the company in clearing the way for Station to emerge from bankruptcy. Attorney Paul Aronzon told the judge there has been "good progress" and a creditors meeting is set for March 5. [...]

Most of the hearing was taken up with the judge approving the request for interim payment of fees and expenses, but Zive had several questions.

For example, one accounting firm charged $19,500 in hotel bills. Zive pointed out that Station Casinos has hotels where the representatives of FTI Consulting Inc. can stay.

"I don't know if the hotels still comp, but we need to be careful," Zive said. "This is not a large amount of money but it doesn't have to be."

The judge approved $3.9 million in fees and expenses for one law firm where some 50 attorneys and legal assistants are working on the case representing Station.

The judge noted two lawyers in the firm of Milbank, Tweed, Hadley & McCloy are charging $995 an hour and a small group of others are billing at $900 to $950 an hour.

"When you bill at that rate, I expect a great deal of efficiency," he said.

The judge then threatened to hire a court-appointed fee examiner to investigate of Station's expenses keep spiraling out of control.

So I guess this is what I'm thinking about the whole ordeal now.



Don't like my Gaga? Too bad, bitchez! It's my birthday, dammit! Oh yeah, what was I talking about again? Oh, that's right, back to Station and Boyd. ;-)

I guess Station isn't really out of the woods just yet. As always, the Fertittas' wacky spending habits and self-enrichment schemes are coming back to bite them. And as long as they keep screwing with their own company like this, there will always be some kind of opening for Boyd.

And by the way, Station also still has to deal with its stubborn refusal to let its workers organize.

Hundreds of workers from Station Casinos founded a union organizing committee last week and are meeting at the Culinary Workers Union, Local 226 today. The workers have called on the company to agree to a fair process for workers to form a union free from management interference, intimidation and harassment. The Culinary and Bartenders unions have informed the company’s owners, partners, creditors and the National Labor Relations Board of the committee’s formation.

Station Casinos answered the workers’ request for a fair process with threats and intimidation. Yesterday, the unions filed an Unfair Labor Practice charge against the company with the National Labor Relations Board alleging the company violated federal labor law in over 100 incidences by threatening, surveilling, physically assaulting and intimidating workers for their union activities.

“I’ve worked at Palace Station for 18 years,” said Casino Porter and Organizing Committee Member Casiano Corpus. “I joined the organizing committee because I want a better future for myself, my family and my co-workers. Station Casinos may not want a union, but it is not their decision to make. It is our decision and they shouldn’t try to scare or intimidate us because of our union activity.”

Since a management-led buyout in November 2007 that paid Station Casinos insiders $660 million, the company has subcontracted out its coffee shops and its uniform department to outside operators. Hundreds of workers have lost their jobs with the company as a result. The company has also cut hours, made permanent lay offs, suspended the workers’ 401(k) match, and raised employees’ health insurance premiums. [...]

“These workers are standing up for themselves and their families,” said Geoconda Arguello-Kline, Culinary Workers Union President. “The company and the workers are in a very difficult position right now because the 2007 buyout increased the company’s debt and left it unable to weather the economic downturn. The company is making decisions that affect these workers lives and their ability to take care of themselves and their families. The workers didn’t create this mess, but they are suffering as a result. We are going to do everything we can so they can achieve the respect they deserve and take care of their families with dignity.”

It's already looking ugly with accusations of violent assault (FOX-5 video) now flying. So for now, the sordid soap opera that's become "The Station Casinos Bankruptcy Case" continues.

Monday, March 1, 2010

Casinos: Las Vegas Sands to Move Out of Pennsylvania? Into Florida?

Confusion, confusion, confusion! What on earth is going on at Sheldon Adelson's empire these days?

First off was some explosive news over the weekend that Las Vegas Sands is looking to sell the Sands Bethlehem casino that they had just started building last year. The casino has been open only for a few months, and works hasn't even begun yet on the planned hotel part of the project.

So today, the official word out of LVS is that they are NOT planning to sell Sands Bethlehem.

Las Vegas Sands Corp. today denied "rumors" that it plans to sell its Pennsylvania casino because of disappointing results there.

The Express-Times newspaper in Pennsylvania on Saturday reported that, according to a source, the Las Vegas company hopes to sell its Bethlehem casino.

But Las Vegas Sands said today in a press release it's applied to add table games to the 3,250-machine slot parlor and is preparing to resume construction on a 300-room hotel there.

"Las Vegas Sands Corp. said today that recent rumors of the company's supposed interest in selling its Sands Casino Resort Bethlehem property, or indefinitely delaying the completion of the hotel and other components of the development, are unfounded," the company said in a statement.

With $4.5 billion in net revenue in 2009, Las Vegas Sands collected most of that in Macau and Las Vegas and is preparing to open a $5.5 billion resort in Singapore. The Bethlehem casino, which opened in May, produced $141.8 million in revenue last year.

"With the addition of table games, Sands Bethlehem will become the most complete and convenient gaming destination for millions of New York City and northern New Jersey residents and, at the same time, enhance the profitability of the property starting in the foreseeable future," Las Vegas Sands Chairman and Chief Executive Sheldon Adelson said in today's press release.

OK, so what are we to take from this? Obviously, Sands Bethlehem hasn't yet turned a profit and hasn't been as successful as LVS was originally hoping for. Oh yes, and Sheldon Adelson has said repeatedly that his company is now "an Asian company doing business in America", so it seems to make sense for LVS to focus more on its budding casino projects in Macau and Singapore.

However, one can argue that Sands Bethlehem hasn't had a chance yet to reach its full potential. After all, the hotel hasn't been built yet. The shopping mall hasn't been built yet. The conference center, with its promised arts & cultural center and local PBS TV studio, hasn't been built yet. Sands Bethlehem is supposed to be a "destination resort", but LVS hasn't yet finished the "destination" or the "resort".

Oh, and did I mention that Pennsylvania has just legalized casino table games and Sands Bethlehem can now install them in the casino?

So we don't know yet what really really know about LVS' plans for Pennsylvania... But we now know they're showing interest on the other end of The Eastern Seaboard.

The Seminole Tribe of Florida will be at the center of the debate when lawmakers return to the issue of gambling this year.

Though little has changed for the tribe in the past year -- it still runs blackjack and other casino games without a valid state gambling agreement -- its influence is being felt in all corners of the state.

Other players in the gambling scene, spurred by the prospect of the state giving the tribe a monopoly outside of South Florida, are pushing to add more games and more gambling options in Florida.

• The state Division of Parimutuel Wagering gave permission for the state's seven parimutuel casinos to start using a slot machine-style blackjack game.

• Hialeah Park resumed live racing at the historic track with quarter horses.

• One of the largest casino operators in Las Vegas, Sheldon Adelson of Las Vegas Sands, has hired a lobbyist to explore the prospect of resort-style casinos in Florida.

• The Florida House, with a history of opposing the expansion of gambling, is pushing legislation to lower the tax rate on slot machines at parimutuels.

• The operators of international online poker sites are asking legislators to pass a law to allow online poker games within the state.

• And perhaps the biggest change of all: The federal government, after nearly three years of taking a hands-off approach to Florida's gambling scene, has indicated it will decide whether to shut down or sanction the Seminole Tribe's table games, which were ruled illegal in Florida by a 2008 Florida Supreme Court decision.

``There is a heightened level of involvement and diligence occurring on the part of federal government,'' said Rep. Bill Galvano, the Bradenton Republican who has headed legislative attempts to craft a gambling compact with the tribe.

The issue in Florida is over the Seminole Tribe and how much of the gaming market the state will allow them to control. Previously, the state legislature has been dominated by anti-gambling "Christianist right" Republicans who have toed the religious right line on limiting casino growth in Florida. But now with the Seminole Tribe operating table games without a necessary agreement and the feds likely to direct them to work out a new agreement with the state, there no longer looks to be a "Moral Majority" in Tallahassee as state legislators see massive "Ka-ching! Ka-ching!" dollar signs in using this situation to expand legal gambling across Florida and allow more operators, like Las Vegas Sands, to jump into the market.

Seriously, it will be a game changer... A game changer for Atlantic City, Las Vegas, Biloxi, Tunica, California, and the entire American gaming industry if Florida loosens its anti-gambling laws and allows casinos in or near the state's major tourist attractions like Miami and Orlando.

I guess we'll see how LVS is trying to take advantage of this... And for that matter, if the other big casinos follow suit...