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."

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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.

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.