Two Way Hard Three | Las Vegas Casino & Design Blog

An investment group lead by Carl Ichan has finalized a purchase of the Tropicana in Atlantic City. Ichan has gaming experience having previously owned interests in Arizona Charlie's and The Stratosphere in Las Vegas.

The AC Trop was forced into sale when the NJCC opted not to renew the license of previous owner, Columbia Sussex.

The price for Ichan? $200 million - that's 80% less than the $1B the property was expected to fetch. Amazing.

http://www.lasvegassun.com/news/2009/jun/12/tropicana-atlantic-city-sold-carl-icahn-led-group/

Happy to be back after a little bit of a break. Lots to talk about, as always.

We discuss:

* MGM Mirage Pulls a Rabbit Out of its Hat
* Fontainebleau May Not Be Totally Screwed (we'll see)
* UNLV Center for Gaming Research Trends
* MGM Mirage Selling Properties

Feel free to leave your comments below. If it's a question that you want asked on the show, please make that clear in your post. You can also send those to editor@ratevegas.com.

The results of the long-running New Jersey investigation into the suitability of Pansy Ho as a business partner for MGM Mirage has resulted in the department of enforcement recommending against.

MGM Mirage partnered with Ho on MGM Grand Macau and owns a 50% interest of one New Jersey property, the Borgata.

What happens next is unclear - maybe nothing. The Sun has more:

http://www.lasvegassun.com/news/2009/may/19/nj-mgm-mirage-should-disengage-macau-partner

A very tough quarter for the Las Vegas based operator - 20% reduction in net revenue. To their credit, they don't sugar coat it - things are tough in gaming and these results reflect that.

If they hadn't had some of the TI sale figures in this quarter, things would have looked even worse.

REVPAR took a big hit - looks like they had to significantly drop rates to stabilize occupancy.

http://phx.corporate-ir.net/phoenix.zhtml?c=101502&p=IROL-NewsText&t=Regular&id=1283960&

Looks like The Donald has resigned from the board of the casino company that bears his name, ahead of a potential involuntary bankruptcy:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a8VJv5VIsICs&refer=worldwide

[Insert Apprentice Joke Here]

Trump Ent market cap is in the $7.8 million range (!).

A bit more on the excellent Gaming Atlantic blog.

We're back with another episode! It can be downloaded here.

This time around we discuss:

* Atlantic City
* Las Vegas Economic Woes
* Tropicana Re-Brands as Value Property (!)
* City Center's Harmon is Stunted

Also, be sure to check out the new podcast from the UNLV Center for Gaming Research. You can subscribe to that here: http://gaming.unlv.edu/podcast.html

Fellow Vegas Gang member Dave Schwartz has posted a photo essay bringing us up to date on what's going on in Atlantic City over on AtlanticCityTripping.com.

http://www.atlanticcitytripping.com/features/feature.php?feature_id=1&page=1

My friend and fellow Vegas Gang member David McKee put up an interesting post yesterday with a few updates on the status of the forced sale of the Tropicana property in Atlantic City.

http://www.lasvegasadvisor.com/blogs/dmckee/index.cfm/2008/10/9/Trop-this

We've talked about Tropicana Resorts several times on the Vegas Gang Podcast but it seems the news never stops... and for those not reading McKee on a regular basis, you're missing out.

Over at CityBoom, Chuck has a story about the possibility of the Planet Hollywood folks bidding on the Tropicana AC and possibly opening a branch on the Jersey Shore.

http://www.atlanticcitytripping.com/cityboom/post.php?p=32

I'm waiting for my invite to the opening party.

It looks like the 'chickens are coming home to roost' for Tropicana Entertainment - in our pre-call bater for Vegas Gang, Jeff Simpson tipped us off to this story.

Thanks to Chuck for the link.

http://ap.google.com/article/ALeqM5jCaSMpwrAzEulgNBAe6Lj0iiHrfQD90FOA480

The first episode of what could become a new, semi-regular podcast has been posted.

It doesn't yet have a name but the working title is 'Vegas Roundtable'. It's a gaming industry related podcast in a discussion format. Today's participants include:

Jeff Simpson - http://www.lasvegassun.com and http://www.inbusinesslasvegas.com

David McKee - http://www.lasvegasadvisor.com/blogs/dmckee/

Dave Schwartz - http://www.dieiscast.com

Chuck Monster - http://www.vegastripping.com

Thanks to all participants. The podcast is in my normal feed for 'The Worst Las Vegas Podcast' but it will probably move to a dedicated feed. Also, if anyone can think of a good name, drop them in the comments.

If you don't subscribe to the feed and want the direct URL, here it is:
http://media.ratevegas.com/35-roundtable_1-02_07_08.mp3

Wow. In a pretty amazing turn of events, the New Jersey Casino Control Commission has denied a license extension to the Tropicana Atlantic City.

Here:
http://www.nj.com/news/index.ssf/2007/12/commission_denies_new_casino_l.html

And:
http://www.atlanticcitytripping.com/cityboom/post.php?p=8

The RJ has details on the departure of Tropicana's CFO:

The embattled parent company of the Tropicana on the Strip took another blow with the resignation of the company's chief financial officer after only 120 days in the position. [From ReviewJournal.com - Business - Tropicana CFO quits, takes new job]

MGM Mirage posted their 2007 Q3 results - the company's net revenues are up 6% to $1.9 billion.

Details are here: http://phx.corporate-ir.net/phoenix.zhtml?c=101502&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTIzODMxMSZkb2M9Mg%3d%3d

Some discussion on the call surrounded City Center and Dubai, Bellagio's baccarat room being closed, and the ongoing construction at former Mandalay properties.

Occupancy was up 1% to 97% and ADR hit $147, up from $140. REVPAR hit $143 from $135 a year ago.

An interesting item - gambling revenues, excluding Beau Rivage, are actually down 3% from a year ago.

An interesting wire story about Harrah's dispute with a Native American tribe and a possible $2.8B judgement against the casino company. Analysts pose the possibility that it could even derail the privatization of the company, if the judgement is upheld.

http://biz.yahoo.com/ap/071029/harrah_s_mohawks.html?.v=4

In Business Las Vegas did a fascinating interview with MGM Mirage President and COO Jim Murren last week. It is a highly recommended read that gives great perspective into the thinking that has driven recent deals with Kerzner, Dubai World and others.

It's clear that Terry Lanni and Jim Murren 'get it' when it comes to the biz side of the gaming industry - they are re-defining the standard practices that have been common knowledge in the industry. Business as usual? Not anymore.

From partnering with interesting companies to big ambitious projects like City Center in Las Vegas, they are bringing techniques that have worked well in the general hospitality industry to gaming and it seems to be paying off in spades.

Personally, I'd love to do an interview with Murren but MGM MIRAGE sometimes looks down on Internet media, even those of us with larger numbers than some print publications. I'm hoping one of these days these companies will wake up to that. They're not as bad as some companies but they could do better in this department.

MGM Mirage made a few changes in the executive suite which they announced today.

First off, the extremely capable Jim Murren has been promoted to President and COO of the company (from President, CFO, and Treasurer). Murren came from Wall Street and is probably the most responsible for MGM Mirage being a model for other gaming companies to follow, especially when talking about reporting. Murren will also oversee all properties except for those that are part of the 'City Center Campus'.

Bobby Baldwin has been moved into a new position - Chief Design and Construction Officer. He'll oversee all new construction and capital improvements in the US. He also will oversee the 'City Center Campus', which includes City Center, Monte Carlo and Bellagio.

Lastly, Dan D'Arrigo has been promoted to EVP and CFO.

All of these positions report to Terri Lanni, the company's Chairman and CEO. Additionally, John Redmond, who had been running the properties formerly in the MGM family, including MGM Grand and NYNY has resigned as planned.

The press release is here:

http://phx.corporate-ir.net/phoenix.zhtml?c=101502&p=irol-newsArticle&t=Regular&id=1042568&

Unrelated, Harrah's has scheduled an announcement for tomorrow regarding entertainment changes at their resorts in Las Vegas.

This interesting story in the RJ caught my eye - a well known casino security expert that has trained many in the industry has been accused of colluding to fix high stakes poker games in Atlantic City.

While an integral part of internal controls and even public safety, we don't hear about much of this stuff and that's why I thought it was worth sharing and discussing.

http://www.lvrj.com/business/9112526.html

Technorati Tags: atlantic city, borgata, gaming industry, poker

A fresh new discussion zone for y'all.

MGM Mirage had a big quarter but a large portion of the ground they gained were from one time events - property sales in Primm and elsewhere.

Still, income from continuing operations was also up - the company is healthy and I still consider it to be one of the best run in gaming - a model for the industry in that regard.

Revenues hit $2.11 billion and earnings were at $360 million with those property sales factored in. Incoming from continuing operations was $182 million, up from about $140 million in the year ago quarter.

REVPar on the Strip jumped 7%. I hope to have property specific info soon.

http://biz.yahoo.com/ap/070802/earns_mgm_mirage.html?.v=2
http://phx.corporate-ir.net/phoenix.zhtml?c=101502&p=IROL-NewsText&t=Regular&id=1035817&

Technorati Tags: atlantic city, bellagio, borgata, cirque du soleil, cirquedusoleil, condos, gaming industry, las vegas, lasvegas, luxor, macau, mandalay bay, mgm grand, mgm mirage, mirage, project citycenter, treasure island, vegas

Thanks to Dave Schwartz for allowing us to publish his recent Atlantic City trip report.

The report is after the jump and the photos that go with it are here:
http://www.ratevegas.com/photo/gallery/atlanticcity

Technorati Tags: atlantic city, borgata, boyd, casino design, gaming industry, trip report

We really don't do a lot of Atlantic City coverage - I've only been there one time myself... Not a place that I would want to visit on a regular basis but I had an interesting day there and a great meal at one of Borgata's gourmet rooms.

Borgata itself was impressive - standing in their casino you would be hard pressed to forget you were on the Jersey shore. It feels like a Mandalay Bay-ish type of place.

Anyway, thanks to reader Tom M., for a slew of photo updates:
http://www.ratevegas.com/photo/gallery/atlanticcity

Some interesting new projects like an expansion at Borgata, plus of course MGM Mirage's possible entry into the market - AC is hopping!

Technorati Tags: atlantic city, borgata, boyd, casino design, gaming industry

It's funny, Harrah's is the largest gaming company in the world and I'm just totally not interested in their quarterlies. Maybe it's because they are so spread out and derive revenue from so many locales - I'm not sure.

Anyway, here's an RJ report on Harrah's luck for Q1, which it seems wasn't so awesome due to Atlantic City.

Harrah's is in the process of going private so pretty soon I won't have to write these stories any more.

http://www.lvrj.com/business/7414636.html

Technorati Tags: atlantic city, caesars, gaming industry, harrahs, las vegas, lasvegas

Boyd Gaming posted some nice results yesterday:

http://www.reviewjournal.com/lvrj_home/2007/Feb-21-Wed-2007/business/12696493.html

Boyd is building Echelon Place in Las Vegas on the site of the Stardust, which is set to come down in mid-March. Their joint venture in Atlantic City with MGM MIRAGE, Borgata, has many folks believing that Echelon is a project to watch and their Las Vegas opening will be a bigger splash than some have predicted.

Technorati Tags: atlantic city, borgata, boyd, casino design, gaming industry

Roll The Bones is a new book by Dr. David Schwartz, the director of the Center for Gambling Studies at UNLV. His blog, DieIsCast.com is a great source for gambling information and news along with the ever-popular casino carpet gallery.

Dave has written several gambling related books in the past, including Suburban Xanadu, a study of the casino resort's evolution (this book features an in-depth look at Martin Stern, Jr., who's work we have mentioned several times in the past here on this site) and Cutting The Wire, a look at the Wire Act and Internet gambling.

You can buy this book here (and it supports this site in a small way): Roll the Bones: The History of Gambling

Keep reading after the jump...

Technorati Tags: atlantic city, boyd, caesars, casino design, gaming industry, harrahs, hilton, las vegas, lasvegassands, macau, mgm mirage, project citycenter, ratevegas.com, vegas, wynn

Some of you may know Dave Schwartz over at UNLV and also know that his latest book, 'Roll The Bones', a fascinating history of gambling, was recently released.

I've been plowing through it and plan a review soon. In the meantime, he's running a contest for readers to win a copy of his last book, 'Cutting The Wire'. The rules and regs are located here:

http://www.dieiscast.com/2006/11/02/win-a-signed-book/

The basic idea is that you read his latest and write an Amazon or Barnes and Noble review and then you've got a good chance of getting a signed copy of the last book, 'Cutting The Wire'.

Also, if you mention that we sent you, this Web site could get a special write up from Dave, which would be neat but honestly, you should read 'Roll The Bones' anyway - so far it's a great read and very easy to digest.

Technorati Tags: atlantic city

Is Steve Wynn coming back to Atlantic City and is he working with former arch-rival Donald Trump to make it happen?

This has been reported a few places today (including via our listener line - thanks Brian)!

The rumor is that Steve Wynn and Donald Trump are considering some kind of deal to bring Wynn back to AC on the site of Trump Plaza. That could mean a joint venture, Wynn Resorts purchasing the land outright, or nothing at all.

Nothing concrete on this topic but let's open it up for discussion. Thoughts?

Updated: This is gaining more ground: http://pressofatlanticcity.com/news/story/6878196p-6743121c.html

Technorati Tags: atlantic city, casino design, gaming industry, trump, wynn

I got my review copy of Dave Schwartz's new book, "Roll The Bones" today and I've started to read it. Dave is a friend of mine and I feel lucky to call him that. He's the number one gambling historian and author of several books. He works at UNLV as the Director of the Center for Gaming Research. His Web site is located here, which we are now proudly hosting for him: http://www.dieiscast.com

A full review will follow when I'm done but so far, it's great. Anyone that's seriously interested in gambling should buy this book right now.

The link below is from Amazon.com and not only do you get the book for a great price, but we get a small cut of the proceeds, so you are supporting the site and getting what so far seems like a great book.

Ok, here goes: Roll the Bones: The History of Gambling

Enjoy.

Technorati Tags: atlantic city, aztar, bellagio, borgata, boyd, broadway, caesars, casino design, cirque du soleil, fremont, gaming industry, golden nugget, hard rock, harrahs, hilton, hooters, las vegas, luxor, macau, mandalay bay, mgm grand, mgm mirage, mirage, monorail, palazzo, palms, planet hollywood, playboy, project citycenter, red rock, riviera, sahara, southcoast, stardust, station, table games, treasure island, tropicana, vegas, venetian, wynn, wynn macau, wynnlasvegas

This was on VT yesterday and I should have posted it then but hey, I was busy.

Anyway, this story out of New Jersey indicates that Wynn Resorts might make a play to build a hotel there. I see this as very possible - along with Mississippi and Nevada, New Jersey is the only gaming jurisdiction in America with any sensible tax and regulatory setup.

http://www.nj.com/news/ledger/index.ssf?/base/news-9/1159249454224510.xml&coll=1

Technorati Tags: atlantic city, wynn

A few quick items:

Harrah's is set to remodel the rooms at the Flamingo, casting any demolition rumors into severe question:
http://www.vegastripping.com/news/news.php?news_id=1387

After losing the Tropicana assets, Pinnacle will buy the Sands in Atlantic City:
http://www.vegastripping.com/news/news.php?news_id=1390

Boyd has announced the Stardust will close November 1st:
http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisplayFullDocument&orgId=616&topicId=12552&docId=l:503697936&start=6

Technorati Tags: casino design, gaming industry, harrahs, las vegas, atlantic city, tropicana