happy birthday, mirage!

Happy birthday to my favorite place on the Strip! From the Las Vegas Review Journal:

MIRAGE MIRACLE: The Mirage turns 20 today
Steve Wynn's tropical-themed resort-casino had its critics but kicked off building frenzy
By HOWARD STUTZ

Twenty years ago, The Mirage was the CityCenter of its time...But with the city still recovering from the economic doldrums of the early 1980s, many financial experts didn't think The Mirage would succeed.

Some wondered if The Mirage would really grow the market. Most expected it would just steal customers from neighboring hotel-casinos.

Sound familiar? Read more.

I know the building boom ushered in my the Mirage has its fair share of critics—too big, too garish, too corporate. But there's no denying the Strip recovered as a result of the larger-than-life mega resorts and helped rebuild the market. Thankfully, the idea of Vegas being a family-friendly vacation spot is no longer the brand identity.

Here's a very telling quote about how Steve Wynn built a game changer:

"The '80s were not an easy decade for Las Vegas. Casinos started going after a family friendly market; and Circus Circus (Enterprises) was the most profitable casino company on the Strip, because more people were betting $100 a trip rather than $100,000."
—David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas

friday night tweets: the las vegas strip.

I spent a couple hours on the Strip last evening. No gambling, but I wanted to take in the atmosphere and see if anything was abuzz. I Twittered most of it. And it goes a little something like this...

10:28 p.m.: Pretty quiet night on The Strip tonight. Just nursing a beer, myself...not in the mood to gamble.

10:31 p.m.: And FYI, Casino Royale is kinda scary. But I have no shame. I'll stand in line for a $1 Michelob!

10:40 p.m.: Cops on horseback riding down Las Vegas Blvd.? Shoulda had my camera put for that one. O'Sheas is quiet tonight too.

10:48 p.m.: THOROUGHLY unimpressed with the surly bartender at Imperial Palace's Sake Bar. A little courtesy goes a long way, sweetheart.

11:02 p.m.: Apparently I'm cool enough to get "VIP" passes to the Revolution Lounge tonight, while last week I was ignored...I know. It's dead tonight. But I am dressed rather smartly in my tragically hip untucked black shirt and black blazer, so there's that.


11:33 p.m.: The Mirage did not disappoint. Still my favorite Vegas casino.

here we go again.

These stories will never go away, will they? From the cornfields of Nebraska, reported all the way across the Pond:

Las Vegas gambler sues Caesars Palace claiming casino plied him with drugs

A Las Vegas gambler who lost $112 million (£67 million) in a year, is suing the owner of Caesars Palace, claiming casino staff "milked" him by plying him with alcohol and prescription drugs. Read more.

Has anyone seen the Albert Brooks movie Lost In America? I'm reminded of that.

The complainant's lawyer alleges Harrah's is to blame because "Mr. Watanabe was an obvious gambling addict."

Sorry, Mr. O'Donnell, as a dealer and floor supervisor, I don't have the ability to see the addiction on 'em.

Not to be callous, but at some point, personal responsibility needs to kick in.

leaving on a jet plane...wondering when you're coming back to vegas!

Not terribly shocking, really. From the Review-Journal:

McCarran passenger counts fall 1.3 percent in October
By HOWARD STUTZ

Passenger counts at McCarran International Airport fell 1.3 percent in October. More than 3.51 million passengers came through McCarran during the month, compared with more than 3.56 million passengers in the same month a year ago.

For the first 10 months of 2009, McCarran has seen passenger counts fall 9.4 percent over the period in 2008.

No real surprise that passenger counts are down this year. The real meat-and-potatoes comparison will be 2k10 numbers vs. 2k9 and even 2k8. That'll give the clearest indication if the economy is rebounding. We already know Strip development is going to remain halted. That's old news. Let's see if people are ready to occupy the rooms already waiting for them.

fourth-quarter las vegas: the good, the bad & the ugly.

Quite a bit going on in the Valley this week. Local media's buzzing with the upcoming opening of MGM Mirage's CityCenter, Some telling quotes from a roundtable discussion at the Global Gaming Expo, and oh yeah, Station Casinos continue to lose money hand over fist.

You can read all about each issue at LVRJ.com, but here are the brass tacks:
Least Surprising Story of the Week
MGM Mirage and Dubai World received its gaming license for Aria, the one-and-only casino at the $8.5 billion, 67-acre CityCenter. Shocking, right? The joint will be open for business next month. Read more.

Boyd's Balls—Crystal or Otherwise—Still Ain't That Great
"If you look out over the next 10 years, you could probably count on one hand the number of new buildings we'll see on the Strip. Frankly, my crystal ball isn't that clear, but there will not be the tremendous amount of new buildings on the Strip." —Keith Smith, CEO, Boyd Gaming
Translation: "Anybody wanna buy a half-built casino?" I'm not trying to be a smart ass, but it's clear Boyd doesn't plan on finishing Echelon. They'll sooner buy a Strip property than complete what was to be the company's crown jewel. You know what that means? Expect to look at dormant Echelon and Fontainebleau sites for years! Read more.

Why, yes, Virginia, casinos also can lose money!
At first glance, it would seem implausible that casinos would lose money. But it's a competitive business, just like restaurants and bars and such. Some profit. Some don't. Station Casinos—catering largely to a local market—had to file bankruptcy. And who might be there to bail them out? Boyd Gaming. Guess we now know Bill Boyd tore open that mattress full of Echelon money and has new ideas for it, no? Read more.

Which is good? Which is bad? Which is ugly? You decide.

we want floyd! we want floyd!

My first Fight Night in Vegas.

COTTO CONQUERED: Pacquiao in seventh heaven
12th-round TKO gives Filipino seven belts in seven classes
By STEVE CARP
LAS VEGAS REVIEW-JOURNAL
The chants began as soon as Manny Pacquiao was declared the new WBO welterweight champion Saturday night.

"We want Floyd! We want Floyd!" many in the sellout crowd of 16,200 at the MGM Grand Garden demanded. Read more.

Here's the money quote on Manny Pacquiao: "...the first boxer to win seven world titles in seven weight classes."

Wow! Bring on Money Mayweather!

boyd creating distance from echelon?

Telling, telling quote from Boyd Gaming's third quarter results statement:

Based on our current outlook, we do not anticipate that Echelon will resume construction for three to five years.

While Boyd claims to be committed to a Strip presence, their actions show all they're committed to is a dormant construction site. Unless, of course, they plan to divest from the project and look to purchase another Strip property. It would only surprise me because Boyd has never shown much interest in owning one of the larger Strip properties. But given MGMMirage's financial woes and all-in strategy with CityCenter, perhaps Boyd (or someone) could purchase a property on the cheap.

citycenter: game changer or sinking ship?

I don't know of too many casinos that can make up a $4 billion shortfall overnight. From the Las Vegas Review Journal:

THE STRIP: CityCenter valued below cost
MGM Mirage: Half-stake in project worth $2.44 billion

By HOWARD STUTZ
CityCenter is worth about half of what it cost MGM Mirage and Dubai World to build the massive Strip development, according to third-party valuation specialists.

In a statement to investors Tuesday, in which MGM Mirage said it was writing down more than $1 billion related to CityCenter, the company estimated the value of its 50 percent ownership in CityCenter at approximately $2.44 billion. The project's total construction budget is $8.5 billion.

"This decision and related market conditions led to the conclusion that the carrying value of the residential inventory is not recoverable," MGM Mirage said in a statement.

MGM Mirage said CityCenter was required to have unnamed third parties review its residential inventory for impairment because of the company's decision to reduce the cost of project's 2,400 residential condominiums by 30 percent.

Also, MGM Mirage's largest shareholder, billionaire Kirk Kerkorian, hinted he might divest himself from the company. Read more.

MGM Mirage
CityCenter

a one-way ticket to vegas.

It's official. I'm moving to Las Vegas. After years of pondering, planning and thinking about it, it's now a reality.

I will be embarking on the cross-country journey on or around 9 Nov 09 and reporting for my first day of work in the desert on 16 Nov 09.

I'm excited. I'm nervous. I'm ready to get this show on the road.

Stick around for more dispatches from the desert.

stick around.

Stick around, kids. Things are about to get pretty interesting around here.

to share tokes or to not share tokes?

The latest in the ongoing saga of the Wynn Las Vegas tip-pooling situation. From Las Vegas Review Journal:

THE STRIP: Wynn tip debate continues
In testimony, dealers argue that policy breaks state labor laws
By ARNOLD M. KNIGHTLY

Dividing dealers' tips only among dealers was an industry standard until Wynn Las Vegas changed its policy to include table-game supervisors, a Wynn dealer testified Tuesday before the state labor commissioner.

The dealer, Josephine Tang, who was a dealer at the Luxor, the former Aladdin, and the Gold Coast before joining Wynn in April 2005, was unable to say definitively during testimony how much her pay has declined since the new policy widening the tip pool to include floor supervisors, called casino service team leads, was implemented nearly three years ago. Read more.

hard rock hiring...soon.

Is this the beginning of a Las Vegas comeback story? Too soon to tell. From the Las Vegas Review Journal:

Hard Rock to hire 800 workers by year's end
Posted by Arnold M. Knightly

The Hard Rock Hotel will hire 800 more workers by the end of the year to complete staffing for the property's $750 million expansion, the property announced late Tuesday night.

The niche property, which will open two new hotel towers and other amenities, has already hired 400 workers this year.

The positions to be filled include on call dealers, housekeeping staff, bellmen, front desk and room reservation agents and environmental services attendants.

The Hard Rock Hotel will announce dates for job fairs to be held at the property through the summer soon.

danny gans dead.

I am stunned by this...from the Las Vegas Review Journal:

Las Vegas entertainer Gans dies at home at age 52
Las Vegas entertainer Danny Gans died at his home this morning. He was 52.

The cause of death is unknown.

Henderson Police spokesman Officer Todd Rasmussen said this morning they received a call about 3:45 a.m. from a woman inside the home at 761 Ricota Court in Henderson. The woman said that a 52-year-old male was having breathing problems. When officers and paramedics arrived they found the man unresponsive. He was pronounced dead at the scene.

I remember my first trip to Las Vegas in 1999. Danny Gans was the headliner at the Rio and was largely considered one of the elite shows in Vegas (alongside the Cirque shows). He moved to the Mirage shortly thereafter and was one of the hottest shows on the Strip for years.

In many ways, Danny Gans is the last of the generation of performers; the true Las Vegas variety act. He preceded Celine Dion, who completely changed the Strip, ushering in folks like Elton John, Broadway musicals, etc.

As one friend of mine said to me, Danny Gans is completely lost on the new, younger generation of Vegas travelers. This 25-and-under set only cares about clubbing, bottle service, and being "young, drunk and fabulous."

It's too bad. I think Gans' premature death may also signal the closing of that era of Vegas acts.

one more word about the greektown.

Looks like the Greektown could have a new owner, according to the Detroit Free Press:

Celani aims to buy Greektown Casino
BY MARY FRANCIS MASSON

Tom Celani, a Bloomfield Hills businessman and investor, is trying to buy Greektown Casino in downtown Detroit.
Advertisement

Celani, who was an initial investor in MotorCity Casino, has partnered with Plainfield, a Connecticut-based hedge fund, to bid for Greektown, which is being marketed to buyers through bankruptcy proceedings. Read more.

Call me a neophyte, but how a casino goes bankrupt is beyond me.

BEYOND me!

visiting detroit's greektown casino.

I was in Detroit this weekend for a day trip to catch my first-ever NHL game. I'm a huge fan of the Detroit Red Wings, so it was great to take in a game at the venerable old Joe Louis Arena. Too bad the Wings lost.

I decided to park my car at the Greektown Casino and take the downtown people mover to and from the game, which was incredibly convenient (take note, big cities with traffic congestion issues!).

Aptly named for the neighborhood within which it resides, the Greektown Casino-Hotel boasts a 100,000-foot gaming floor with more than 2,600 slots as well as the full compliment of table games, 400 guest rooms in a 30-story tower, a nightclub and several restaurants from which to choose.

Obviously, the Greektown is shooting for weekend warriors to enter and never set foot outside the complex until they check out.

I was only there for a couple hours, but wandered the two-level gaming area to take it all in.

My first thought was, "Where are the video poker machines?" Instead of putting them among the slots, video poker is in its own, all-too-cozy room away from nearly ever other part of the casino. It's honestly kind of a strange location, if you ask me.

Greektown is one of the remaining ethnic neighborhoods in Detroit; something that's fading away in many big cities (and something you can't create out of corporate investment). The casino butts up against a street lined with Greek restaurants and businesses. It's very unique and worth the visit.

The casino itself wasn't bad, but didn't stand out at all, compared to other casinos I've visited in the Midwest. The table games pits seemed disjointed, if you ask me. The video poker room might be claustrophobic to some, but didn't bother me.

Overall, it's not bad. I'd have to go back and stay for a weekend to get a better feel for it all. I can't complain, though. I did win a few bucks. Their slot machines offer something I've never seen before in a casino for players club members: you have the choice of cashing out of a slot machine with a voucher or putting the money onto your players card; sort of like a debit card. Clever and I suppose convenient. But let's be real. They're trying to keep the money in-house. I'll take the cash, thank you very much.

opening the horizons.

Ostensibly, this blog is about the Las Vegas gaming industry. Lately, it's only been about being dormant. I'm working on changing that. I'm also expanding the discussion ton include topics on gaming around the country as well as the entertainment itself. Don't get me wrong here. I do believe many everyday Vegas travelers are interested in the business aspect of gaming. But they also want to learn more about casinos to determine vacations and weekend getaways.

Casino gaming is no longer a dirty little secret. It's regarded as entertainment just like movies, theater, dining and sports.

Consider this blog a window to the business side as well as the travel side.

Stick around.

citycenter in jeopardy?

Is the Las Vegas Review Journal guilty of hyperbole, or are they predicting the death of CityCenter? Decide for yourself:

CityCenter future in doubt after Dubai partner sues MGM Mirage
By HOWARD STUTZ

The survival of the $9.1 billion CityCenter development was called into question Monday when the investment arm of the Persian Gulf state of Dubai sued MGM Mirage over concerns about the project’s viability.

According to the lawsuit filed in Delaware Chancery Court, Dubai World, a 50-50 joint venture partner in CityCenter, is asking for unspecified damages and wants to be relieved of its obligations under the companies’ agreement that was struck in August 2007.

Dubai World, which is financing its portion of CityCenter through its Infinity World subsidiary, contends that recent statements by MGM Mirage constitute a breach of the joint-venture pact and has put the project at risk. A spokesman for MGM Mirage was unavailable for comment this morning. As of noon PDT, MGM Mirage had not issued a statement about the legal action.

The lawsuit seemingly took MGM Mirage by surprise. Last week, during the company’s fourth-quarter earnings conference call, MGM Mirage Chairman and CEO Jim Murren was asked about the relationship with Dubai World. “Our relationship with Dubai World is outstanding and has been since August of ’07 when we consummated the joint venture,” Murren said. “They have been steadfast partners.” Read more.

mgm mirage break-up...start the clock.

Looks like MGM Mirage's day just got worse. From the Las Vegas Review Journal:

Dubai partner sues MGM Mirage over CityCenter

DUBAI, United Arab Emirates — The Dubai state-run developer involved in the $8.6 billion CityCenter complex on the Las Vegas Strip says it is suing partner MGM Mirage amid concerns about the project's viability.

Dubai World says subsidiary Infinity World filed the lawsuit in Delaware Chancery Court "to protect its rights and the best interests of the CityCenter project."

Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites


MGM Mirage is struggling under more than $13 billion in debt as it pushes ahead on CityCenter, its largest casino yet.

Infinity says recent statements by MGM Mirage about its future viability constitute a breach of contract and put the CityCenter project at risk.

It says it's asking the court to relieve it of its obligations under the joint venture agreement.

The irony of a casino plowing forward with a semi-risky venture while accruing a mountain of debt is not lost on me. When they started this project, it looked like a license to print money. The economy was soaring. Vegas tourism was at an all-time high and the affluent, young crowd was streaming onto the Strip in droves.

All the major Strip operations could afford to charge high prices for rooms, dinner, entertainment, etc. They were trying to push all the penny slot players and nickel blackjack players downtown with all the other riff-raff.

But now, MGM stock is barely worth the paper it's printed on.

I'm not celebrating MGM's recent misfortune. It disappoints me to no end. But it's worth noting all the corporate monsters of the Strip have only themselves to blame. Goliath smote Goliath.

Start the clock on the breakup of MGM Mirage.

nhl in vegas, eh?

This is a big deal to a hockey fan like me. From ESPN.com

NHL awards show moves to Las Vegas

NEW YORK -- The NHL is moving its annual awards show from Toronto to Las Vegas.

Part of a three-year deal with the Las Vegas Convention and Visitors Authority announced Friday, this year's show will be held June 18 at the Palms Hotel.

"Las Vegas specializes in shining the spotlight on outstanding performers," NHL commissioner Gary Bettman said. "It's innate energy offers an exciting setting for our celebration of excellence."

the strip for sale?

Could the current recession spur a return to individual-owned Strip resorts? One former casino owner (and soon-to-be owner of Treasure Island) seems to think so.

From LasVegasNow.com:

One Casino Does Well, Despite Recession

(Phil Ruffin) believes his pending purchase of the Treasure Island is a great long-term investment, citing its attractive selling price of $775 million, its premier location on the Strip, its recent renovation, and its lack of debt.

In fact, Ruffin says debt is what's doing in the Strip's corporate conglomerates right now, "The problem is all that debt that is just piled on. They can't pay the debt service so all the banks are going to have to restructure that debt."

Ruffin says that will likely mean a dilution of ownership and a return, in part, to days past in Las Vegas, where there were more individual casino owners and a more personal touch, "You got a lot more personal attention. The owner was right there on the property and could make instant decisions. That's why I'll have my office located inside the TI." Read more.

Am I the only one who noted the irony of a casino being in debt up to its own eyeballs? Seriously! These places are licenses to print money! I digress.

I'll be interested to see if Harrah's and MGM-Mirage sell off any properties during the economic downturn. It's no secret Las Vegas is hurting right now. You don't even have to listen to Phil Ruffin talk of it. I know people on the front lines in Las Vegas and they'll tell you it's slow right now. Everyone's in survival mode.

I'd like to think it'll get better before the end of the year, but that's looking less and less likely.

I wonder if you'll see more folks like Phil Ruffin and Steve Wynn out there this year; individuals who want to own a piece of the Strip. Now may be the time for some prime real estate in the desert.