iGambling.

Card counting goes hi-tech...and gives casinos yet another headache. From the AP:

Casinos are warned about card-counting iPhone app

LAS VEGAS (AP) - Nevada gambling regulators have warned casinos in the state about a card-counting program that works on Apple Inc. (AAPL)'s iPhone and iPod Touch that illegally helps players beat the house in blackjack.

Card counting itself is not illegal under Nevada gambling laws, but it is considered a felony to use devices to help count cards.

The Nevada Gaming Control Board sent a memo to casinos last week warning them of the program.

In blackjack, certain card counting techniques help players determine when they are likely to win a hand and adjust their bets accordingly.

Nevada learned of the program from gambling regulators in California, where officials at an Indian casino found customers using it and tipped state authorities.

Source: Las Vegas Review-Journal

At the casino where I work, we learned about this app during a pre-shift meeting. I downloaded it on a break and haven't given it a complete once-over. So far, it looks like a tutorial more than an actual card counting app that a player could actively use during a live game.

But I could be wrong. I'm going to monkey with this program a bit more.

It's worth noting counting cards isn't something new. Casino pit bosses have been wary of it for decades. Many people know how to count cards. But most people don't know what to do once they get the count. That's where the advantage is.

But you knew that already.

it's hard out there for a casino employee.

Looks like I picked a helluva time to get back into the casino industry, eh?

From Yay-hoo News:

Macau's Venetian sacks further 500 staff as credit crunch bites

HONG KONG (AFP) – Macau's giant Venetian casino owned by troubled Las Vegas Sands has sacked 500 staff, the company said in a statement, the latest sign of the firms's struggles to deal with the global credit crunch.

The Venetian, a massive hotel and casino complex billed as the cornerstone of a new Las Vegas-style strip, has cut the weekly working week for its casino workers, and laid off 500 staff, the firm said in a statement.

"The company has adopted a series of measures to control operating cost in all business areas, including letting go approximately 500 employees across all levels who are not Macau residents," a Venetian spokesman said.

"(These include) about 100 management-grade expatriate employees in gaming operations," the statement, released late Monday said.

It said many of the workers would be offered alternative employment at the firm's new casino project in Singapore. Read more.

I just like the use of the word 'expatriate'. It sounds very clandestine and espionage-esque.

going the extra mile.

I got to thinking last night about what it's like to be a vacationer or business traveler coming to Las Vegas. The airport is always busy, we know that. But it's not an excruciating experience. In fact, I've always had good experiences at McCarran.

And while none of my hotel stays could be called bad, the one part of the trip I dread the most is checking into the hotel. Seriously, this can be a painful experience. I've stayed at numerous hotels on the Strip and it's always the same: stand in line, wait your turn, then stand some more while the congenial hotel rep checks you into your room.

But that's just it. You could spend up to one hour waiting to get into a room you already have.

I confess to knowing nothing about running a hotel. But in a world where competition for consumer dollars is getting tougher and tougher, perhaps this oft-overlooked portion of the traveling experience is in dire need of some innovative thinking.

Think about it. Most people book their rooms online or via a telephone call. If you don't pay for it in advance, you at least provide credit card information to cover the cost. So really, all your information is already in the hotel's system: how many occupants, smoking/non-smoking, room with a view, etc. But how often do you find yourself running over the same information when you get to the hotel? I don't blame the reps. They're just doing their jobs. But I think there's a better way to go about this.

So here's what I propose: It's time to do away with the tradition switchback lines for checking in and checking out. All services should be managed with concierge-level hosts who will cater to your needs from the time you check in to the time you check out.

Think about how you would feel if, when you arrive at the door, you are immediately greeted by a host who has a packet with your name on it, containing all your check-in info, sits down with you, goes over everything and shows you to your room? No standing in line. No leaning on a counter while a rep punches away at a computer. It's relaxed. It's personal. It's inviting. And while you're sitting there, a bellhop already takes your bags to your room, where you'll find an assortment of complimentary beverages and light snacks to greet you.

See, now on the other side of this—behind closed doors—the host is gathering information about the guests, learning their favorite restaurants, casino games, shows, etc. to continue to personalize their visit. So when the guests want something, the host already knows how and when to provide it. And when the guests check out of the hotel, it's more like something you'd expect from a host at a dinner party. Stress: warm, friendly, inviting.

And a week or so later, when that family is settled back into life at home, they receive a personal note from their host, thanking them for their stay and looking forward to their return. I know many hosts already do this, but this is for the people who seek out the host; not usually the other way around. I think it's time to turn the model upside down.

I am going to continue investigating great customer service and report more about it here.

Why? Because I'm of a mind that says we can always do better when it comes to providing top-level, personal customer service in the gaming industry.

frankie the snitch?

Frank "Lefty" "The Snitch" Rosenthal? From the Las Vegas Review Journal:

'Lefty' Rosenthal was an FBI snitch
by JANE ANN MORRISON

Back before he was mayor of Las Vegas, when he was the city's leading mob attorney, Oscar Goodman insisted he didn't represent snitches.

He represented Frank Rosenthal. Now that Rosenthal is dead, three former law enforcement sources with first-hand knowledge confirmed what was long suspected. Lefty Rosenthal was an FBI informant, whether his attorney knew it or not.

While Rosenthal was alive, no one would confirm it. Nobody wanted to be the one who got Lefty whacked. Read more.

leave the kids at home!

Oh for the love of Christ! From the Las Vegas Sun:

Parents arrested after 10-month-old abandoned at casino
By Mary Manning

Metro Police arrested the parents of a 10-month-old boy Friday after the baby was left in a stroller in front of the Imperial Palace hotel and casino for more than an hour.

Officers arrived at the hotel at about 5:35 p.m. Friday after two concerned tourists reported to security guards that the baby was alone in his stroller, police said.

Through video surveillance cameras, officers identified the parents who had abandoned the child, police said.

The parents were inside the casino gambling. When questioned, they told police they had left the baby after an argument. Both parents left the baby in his stroller on the sidewalk in front of the casino, police said. Read more.

And of course, it happened at the finest dump on the Strip, the ol' Imperial Palace. Lovely.

How many times do we have to cover this? Unless your children are legally able to get past a bouncer at ghostbar--or you're planning on selling them on the black market--DO NOT BRING THEM TO VEGAS!

Seriously, Las Vegas is NO place for children. Leave them at home!

You'd think this sort of thing is self evident. Apparently not.

"...eight straight months of declining revenue on the las vegas strip..."

I shouldn't be so harsh on Boyd Gaming, though. It's not like they're alone in this economic mess. The Big Three in Vegas--Las Vegas Sands Corp., MGM Mirage and Wynn Resorts Ltd.--are getting clobbered in the markets.

From Bloomberg.com:

Las Vegas Sands, MGM, Wynn May Signal 'Ugly' 2009
By Beth Jinks

Oct. 27 (Bloomberg) -- Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Mirage, the three largest U.S. casino companies, may signal an "ugly" year ahead as gamblers curb casino trips and betting from Las Vegas to Macau.

Eight straight months of declining gambling revenue on the Las Vegas Strip and tightened visa limits by authorities in Macau, the only place in China where casinos are legal, eroded third-quarter profits, said Dennis Forst, an analyst at KeyBanc Capital Markets in El Segundo, California.

Shares of Wynn, controlled by billionaire Steve Wynn, have dropped 67 percent this year. Sands shares plunged 23 percent on Oct. 24, bringing its year-to-date decline to 94 percent and forcing it to relinquish its ranking as the biggest U.S. casino company by market value to Wynn.

No. 2 MGM Mirage, majority owned by Kirk Kerkorian, has fallen 87 percent. Penn has shed 79 percent, while Melco Crown Entertainment Ltd. has lost 72 percent. Read more.

I'm no economist, but Vegas will come back. It may take a year or two, but it'll come back. Gaming/travel/tourism are not recession-proof industries, you know. What I'm most curious of, though, is which hotel-casinos in Vegas will fold. The Big Three have deep enough pockets to survive. Harrah's is THE biggest casino company in the world, so they're probably safe. But it's going to be the little guys and outliers who lose. Are there any left in Vegas? Not many, but a few.

2009 promises to be nothing if not exhilarating.

will boyd's echelon ever open?

Things are not looking good for Boyd Gaming's mega-resort on The Strip, The Echelon. From Reuters:

Boyd Gaming sees Las Vegas project stalled thru 09

LOS ANGELES, Oct 28 (Reuters) - Casino operator Boyd Gaming Corp (BYD.N: Quote, Profile, Research, Stock Buzz) said on Tuesday it does not expect to resume construction next year on its stalled Las Vegas Strip project and declined to comment on its fourth-quarter earnings outlook.

Boyd said in August it expected to halt construction of the partially built $4.8 billion Echelon project for at least nine months.

Chief Executive Keith Smith, speaking on a conference call, said the company is now looking at alternatives, including opening the project in phases, modifying its scope or entering into other partnerships.

Chief Operating Officer Paul Chakmak, citing uncertainty in the current economic environment, said the company would not issue its typical quarterly earnings forecast. (Editing by Jeffrey Benkoe)

This is bad. Very bad. The Echelon was slated to open in 2010. When the credit markets went kaput, they halted construction for the rest of '08. Now all of '09 is getting wiped out? Opening in phases or modified scope?

So much for building a competitor to its neighbor across the street, The Wynn.

notorious vegas legend dies.

How on EARTH did I miss this? From the Los Angeles Times:

Frank 'Lefty' Rosenthal dies at 79; sports betting expert inspired movie 'Casino'

Frank "Lefty" Rosenthal, the onetime Chicago bookmaker who ran four Las Vegas casinos in the 1970s and whose turbulent life and near-death experience with a car bomb inspired the movie "Casino," has died. He was 79.

Rosenthal, who was barred from casinos because of alleged mob ties, died of a heart attack Monday at his home in Miami Beach, a Fire-Rescue spokeswoman told the Associated Press.
Read more.

In the annals of Las Vegas/casino movies, Casino is easily one of my favorites.

allegiant bucking the trend.

Perhaps all is not lost right now on the Vegas tourism industry. From the Las Vegas Review Journal:

Allegiant revenue jumps despite financial downturns
By Benjamin Spillman

Las Vegas-based Allegiant Travel Company managed to increase revenue more than 35 percent in the third quarter despite operating a leisure-based airline at a time when the hospitality and airline industries are suffering from dramatic financial downturns.

Allegiant reported today that it earned $116.9 million in the third quarter, up 35.4 percent from the same quarter in 2007. However, profits on the revenue fell 4.2 percentage points to 6.9 percent, in large part because fuel costs were higher.

During a conference call with analysts company officials were upbeat despite dire predictions for leisure travel. They said lower fuel prices will give the airline more flexibility in the future and discussed several possibilities for increasing revenue further, including the potential to charge passengers for carry-on luggage. Read more.

I've always liked their model of providing direct flights to destination cities for secondary markets. I've also flown them a couple times. The first time was not that great, but the second time was very good. I'd fly them again.

dear vegas...you want me on that dice table. you need me on that dice table.

While I'm keenly aware the Strip prefers its dealers to break in on the Strip, let me tell you firsthand the Midwest riverboats are not the minor leagues. I'm not arguing the action in Joliet is better than Bellagio, but the games, rules and procedures are taught the same across the board.

I've been a dealer for about two years total now (with a seven year sabbatical in between stints) and working the dice table on a riverboat is nothing to sneeze at. I've observed games at all levels and at several casinos and here are a few observations:

Riverboats Love Speed.
For better or worse (and I think it's worse), riverboat dice pits have an unhealthy obsession with speed. I know how it goes. More rolls = more money. But it's silly. Vegas dice tables move at a relaxed pace, but not too slow. The key difference is...

Midwest Dice Players Love Prop Bets.
Perhaps I'm not watching the right games at the right time in Vegas, but I have never seen the same sort of prop section on the Strip as I do at a Midwest riverboat. Sure, a Vegas game will have the obligatory hardway bets, a couple C/E bets, maybe even a Horn High 12. But come to the riverboat and you'll see one player simultaneously booking: $10 Horn High Yo, $9 hopping sevens and a $1 ace-deuce. THEN another player on the same game will have the easy eights hopping and a High-Low.

Every. Single. Roll.

Don't tell me Midwest games are soft. The players are prop action freaks...at their own peril.

Procedure Suffers Everywhere.
I know most dealers fancy themselves to be procedurally sound, but I think they all get bored. How many stickmen take their eyes off the dice? How many 21 dealers correct their own mistakes? This happens at EVERY casino.

Final observation...

I Can Deal Anywhere.
Let me tell you why: During my shift Saturday night I was dealing to every skill level of player, action from $40 buy-ins to players working black, all manner of prop betting and all manner of...well, etiquette.

While it was mentally taxing, it was not too much to bear. If I can deal that game in the Midwest, I could do it standing on my head at Paris, or Caesars or the Wynn.

Count it.

caesars palace: "what sagging economy"?

Looks like the new Caesars Palace tower is ready for business. From Forbes:

Caesars Palace tops off sixth tower on Vegas Strip
By OSKAR GARCIA

Casino company Harrah's Entertainment Inc. topped off a 23-story tower at Caesars Palace on Tuesday as part of a $1 billion expansion at its flagship Las Vegas Strip resort.

The 665-room Octavius Tower is the sixth at Caesars and is part of an expansion the company hopes will help the hotel-casino compete with planned neighboring luxury resorts.

Gary Selesner, president of Caesars Palace, said expansion plans haven't changed, despite difficult economic conditions.

"This is all about the future," Selesner said. "We're building our capacity for the turnaround that will come, whether it's one, two or three years down the road."

Average Las Vegas hotel room rates for August were $107 per night, down 15.3 percent from August 2007. Occupancy was down, too, with 88.3 percent of rooms filled in August, down 2.9 percent compared with August 2007.
Read more.

I'm most struck by the last paragraph there, although Las Vegas is not going to go bust in the current economy. When the economy plunged after 9/11, many Vegas casinos and resorts merged to survive. There will be some fluctuation and lean times, but the economy will rebound.

I doubt anything could turn Vegas dark, quite honestly.

no bonus for mgm mirage.

Looks like I picked a bad time to start thinking about moving to Vegas. From the Las Vegas Review Journal:

MGM Mirage employees to miss bonus
Cash program out because company 'unlikely' to meet profit goals for 2008
By HOWARD STUTZ

MGM Mirage told its workers Monday that it was eliminating this year's cash bonus program, which is based on achieving a certain level of profitability.

"It is unlikely we are going to meet those goals this year," MGM Mirage spokesman Gordon Absher said.

The company's cash bonuses differed for all employees and the company did not say what the triggering points were for each level. Absher said the casino operator wouldn't say how much it was saving by eliminating the bonus program for 2008. Read more.

This isn't terribly surprising news. Vegas profits have been down all year. Nevertheless, it does show the economy is affecting everyone.

cinevegas turns 10.

Doug Elfman of the Las Vegas Review Journal puts a pretty good wrap on CineVegas:

Unlike some others, celebs at CineVegas talented, classy

DOUG ELFMAN

Japanese artist and filmmaker Takashi Murakami points to one of his animated characters after arriving at a screening of "Planting of the Seeds" at the Wynn Hotel and Casino during the CineVegas Film Festival in Las Vegas on Monday, June 16, 2008.
AP Photo/Laura Rauch

For 10 days, actors strolled red carpets and private parties at CineVegas. When prompted, they told stories of their younger days as messy tourists in Las Vegas. But their admissions were hardly ripped from the pages of Pamela Anderson's diaries.

Sam Rockwell, star of 2002's "Confessions of a Dangerous Mind," confessed: "The last time I was in Vegas, I woke up in a lawn chair." But he didn't elaborate.

Gabriel Mann, a player in the "Bourne" thrillers, said his last visit here was 10 years ago, when "I lost all my money -- my money and my mind." Yet he declined repeated requests to explain this rap.

So even though CineVegas was a little crazier than usual -- with one Britney Spears sighting, an official party held at a strip club, and gobs of star-gazing parties stocked with free booze -- its stars were reserved actors showing art house fare to film lovers at the Palms. Read more.

$4 gas prices forcing gamblers to stay close to home?

Howard Stutz at the Las Vegas Review Journal has my job! He writes a weekly column about the gaming industry.

Here's a little bit of today's Inside Gaming column:

No surprise, but gasoline prices of more than $4 a gallon don't bode well for regional casino markets. Deutsche Bank gaming analyst Andrew Zarnett said Atlantic City would suffer as gamblers stay close to home.

"Consumers will choose the convenience of Pennsylvania casinos over Atlantic City amenities," he said.

Potential casino patrons are spending more for necessities, such as gasoline and food, leaving fewer dollars for discretionary activities, including gambling.

Zarnett said casinos in Indiana, Iowa, Louisiana and Missouri are experiencing declines in visitation. Here's a little bit of today's Read more.

I made the rounds in Vegas this past May and all the talk among the employees in the pits was how its business was...well, in the pits.

Whether or not we're in a recession is a debate best left to the wonks on Meet The Press, but when people are paying $4 for a gallon of gas? Something's got to give.

jacko in las vegas?

Looks like the talk of a Michael Jackson show in Las Vegas is back. From Reuters, by way of Yahoo news:

Michael Jackson in talks on possible Las Vegas act
By Steve Gorman 5 minutes ago

LOS ANGELES (Reuters) - Michael Jackson may relaunch his career as a Las Vegas act, thanks to the private equity group that recently bought the loan on his Neverland Ranch in California to help the pop star avert foreclosure.
ADVERTISEMENT

The investment firm Colony Capital is discussing with Jackson various repayment options for the $23 million debt, including a possible long-term engagement as the resident performer of a Vegas casino or nightclub, a source familiar with the talks said on Friday.

Colony Capital, based in Los Angeles, owns the Las Vegas Hilton and is a major shareholder in the Station Casinos chain. Read more.

space-age gaming at the rio.

Harrah's is going after the millenials with new gaming options. From the AP:

Casino debuts new touch-screen bar table
By OSKAR GARCIA

LAS VEGAS (AP) - Microsoft Corp. (MSFT) (MSFT) and Harrah's Entertainment Inc. introduced a high-tech interactive bar table Wednesday that lets patrons order drinks, watch YouTube videos, play touch-screen games and even flirt with each other.

The tables offer Harrah's a new way to track its customers' habits and behaviors, adding to its sophisticated costumer rewards program that tracks users' gambling habits.

"Of all the goodies up our sleeves lately, this is one of the most dramatic," Tim Stanley, chief information officer of Harrah's, told The Associated Press. "The range of opportunities are fairly limitless."

The six rectangular tables with built-in 30-inch flat screens using Microsoft Surface technology were installed in a lounge at the Rio All-Suite Hotel & Casino in Las Vegas, with custom applications built for Harrah's.
Read more.

I am very curious to see this in action. I may have to swing by the Rio in August to check it out. Touch-screen gaming isn't necessarily a new thing, but I'm going to bet (ha!) this system is much more sophisticated than the standard video poker consoles embedded in casino bars. The "flirt" option makes me laugh because I can see that being used by those who are working in "the oldest profession." I know. Hookers in Vegas? I'm shocked...shocked. :-)

revenues still down in vegas.

No real surprise here...from the Las Vegas Review Journal:

Gaming revenues decline again

Gaming revenues in April decreased 5 percent compared with the same month a year ago, the fourth straight month in 2008 casinos took in less than they did in 2007. Gaming revenues were $1 billion, compared with $1.053 billion a year ago.

On the Strip, gaming revenues were $524.1 million in April, a 1.28 percent decrease compared with $530.9 in April 2007.

Gaming taxes collected by the state based on April's gaming revenues were off 3.5 percent from a year ago, the seventh month out the last 11 that gaming tax collections have shown a decrease.

A few years ago, when I was a dealer, we at the casino used to comment how casinos were recession-proof. That's not the case any longer. Although I would guess the riverboats and Indian casinos across the nation are hurting worse than Vegas as a whole. Just a guess, though.

Just a year ago the Strip was gearing up to skew high-end with lavish resorts catering to affluent people. That's not going to change, but the gaming side of things will have to skew toward "average" players until we come out of this poor economy.

Again, duhhhhh!

it wouldn't be the first time mediocre talent sold out in vegas.

That's so crazy it might work! Mike Weatherford of the Las Vegas Review Journal has an idea that's begging to be picked up.

'Idol' should have home on Strip

With the "American Idols Live" tour headed for the Thomas & Mack Center on July 5, it once again begs the question, "Where's the permanent, sit-down version of 'American Idol' on the Strip?"

"It's crazy that it hasn't happened. Can you imagine? It would sell out twice a night," says Andy Walmsley. He is both the "Idol" set designer and a Vegas producer himself, albeit on a modest level, with "Laugh Out Loud with The Scintas" at the Las Vegas Hilton.

I've long accused casino entertainment types of being imitators, not innovators. But there is a disconnect between the big entertainment ideas -- some obvious, some less so -- and the current reality of casinos serving as innkeepers, collecting rent from the more humble likes of magicians and comedians. Read more.

changes abound for tropicana.

I think the most surprising part of this story is Tropicana Entertainment is based in Kentucky. From the Wall Street Journal:

Embattled Tropicana CEO Steps Down

By TAMARA AUDI

Less than two years after emerging victorious in a billion-dollar bidding war that gave him control of the legendary Tropicana casinos in Las Vegas and Atlantic City, William J. Yung III has stepped down as CEO of Tropicana Entertainment LLC.

According to a statement from the company, Mr. Yung stepped down this week. He will remain on the company's board of directors.

He is replaced by company president Scott Butera. Read more

water, water (not) everywhere...

Right now we're fighting around the world for oil. In the not-so-distant future, don't be surprised if we go to war over an even more valuable resource: water. From the Gant Daily:

Are Water Wars in our Future?

By Lisa Duchene

"Freshwater access is a classic example of the tragedy of the commons," said Robert B. Packer, lecturer in political science at Penn State, who studies international political economy and the causes of war. "As with all common resources, unlimited demand and waste by some can lead to depletion of the resource for all. The hydroelectric dams that power the air conditioners of Las Vegas and Phoenix have depleted the waters of the Colorado River for agriculture. Heavy pesticide and fertilizer chemical use in agriculture has spoiled drinking water in many parts of the globe."

Now before you get all apoplectic about Vegas corporate interests depleting the planet, holster it. The Nevada tourism industry has been out in front of this crisis, leaning on the hotels and casinos to conserve water.

NPR did a story about it back in 2003: Las Vegas Copes with New Water-Use Limits

They also covered it last year during its Struggling Over Water series:

• Stakes High for Las Vegas Water Czar
• Las Vegas Water Battle: Crops vs Craps