The Tropicana hoped to step back into the big leagues when it opened its
poker room in the heart of the Las Vegas Strip, touting it as the coolest in
town.
But that same morning, federal agents shut down the three biggest online
poker sites on the Internet. Last September, less than a year and a half later,
the iconic casino quietly swapped out its green felt tables for slot
machines.
It's a story that's become increasingly common as the crackdown on Internet
gambling weakens poker's appeal, and the casinos that once competed to lure fans
of Texas Hold 'Em abandon the waning game in favor of more lucrative
alternatives.
Not a money maker: Poker has never been a big moneymaker like slot
machines or roulette. But when the game's popularity soared during the 2000s,
casinos were willing to forgo the extra dollars to get players inside their
buildings.
Now the calculus is shifting. In Sin City, epicenter of the poker craze, at
least eight rooms have folded in the past two years. The trend is also playing
out in Mississippi riverboats, Indian casinos and gambling halls near big cities
from California to Florida.
Poker's proponents insist the game remains as popular as ever, and some
larger casinos say their rooms are bustling.
In a statement this month announcing the World Series of Poker lineup,
executive director Ty Stewart said the summer bonanza in Las Vegas would be an
"affirmation about the strength and global appeal of the game."
But the spate of poker room closures on the Strip has some wondering whether
the largest gambling trend to sweep the country in 25 years may be losing
momentum.
"I just think the allure of poker is lessening," said William Thompson,
author of the encyclopedia
"Gambling in America" and professor of public
administration at the University of Nevada, Las Vegas. "That's one reason the
smaller casinos would just say, 'Hey it's not worth all the time to set
everything up. A slot machine would do a lot better.'"
Falling revenue: Poker revenue has been falling in Nevada since 2007,
the year after the federal government first cracked down on virtual gambling and
forced online companies to close or relocate offshore.
The recession hobbled casinos across the board, but while winnings from other
games began to pick back up in 2010, poker revenue continues to slump by an
average of 6 percent a year, according to annual reports from the state Gaming
Control Board.
Poker revenues stacked up to $123 million last year, down from a high of $168
million in 2007.
World Series: Entries in the World Series of Poker's main event also
took tumble in 2007, falling by 28 percent from a high of 8,773. Entries have
only topped 7,000 once in the years since.
On April 15, 2011, the federal government took its strongest stand yet
against the semi-legal world of internet poker, blacking out three major sites
on a date later dubbed "Black Friday."
No longer could fresh crops of poker players develop their games online.
The Tropicana hotel-resort, which was remaking itself with several major
renovations at the time, opened its new poker room the same spring day.
"Poker had gone through a dramatic popularity phase. It grew really quickly.
And we jumped on board," said Fred Harmon, chief marketing officer for the
casino that sits on a busy Strip intersection opposite the MGM Grand and New
York New York.
The decision to replace the room with slot machines last fall was pure
economics, Harmon said.
"I think every company over the last several years have had to look at what
they do and what makes money."
Across the country: Casinos across the country are making the same
calculation.
Sam's Town in Tunica, Miss., closed its poker room in January, citing the
economy. The Seminole Casino Hollywood near Fort Lauderdale, Fla., replaced its
room with slots in September.
Indian casinos in states like Minnesota and the Dakotas are also pulling
their rooms, according to marketing consultant Theron "Scarlet Raven"
Thompson.
"What you're seeing is the mom and pop-sized poker rooms are closing. The
larger properties are monopolizing the poker crowd," he said.
Several smaller Las Vegas casinos decided they no longer wanted to bet on the
game in 2012, including Ellis Island, which closed its room just two months
after opening it. Casino bosses also removed rooms from the Silverton south of
the Strip, Aliante to the north, and Fitzgerald's, which eliminated its room
when it rebranded as the D.
The Gold Coast, the Plaza and Tuscany casinos closed their rooms in 2011.
Poker has never been a high-profit game for casinos is because players
exchange money with each other, not the house. Rooms must employ a dealer for
every table and can only collect portion of what players put down, usually about
5 percent.
Yet at the height of the craze, casinos scrambled to install rooms for a new generation of fans.
The game's meteoric run is generally attributed to the rise of Internet
gambling, new technology that let viewers see players' hidden cards in televised
tournaments and a watershed moment during the 2003 World Series of Poker when an
amateur with the unlikely name Chris Moneymaker claimed the $2.5 million first
prize in front of a million television viewers.
After Moneymaker's win, the MGM Grand on the Las Vegas Strip reopened its
poker room, which had been closed for years, and Caesars Palace announced plans
to open its first room in more than a decade. The Venetian followed suit in
2006.
Mega-casinos continue to invest in the game. The Venetian added 17 tables to
its room in September, making it the biggest game in town.
Caesars Entertainment added a slot-style progressive jackpot element to its
games earlier this year, and the expansive room at the Bellagio is still packed
most nights.
Venetian poker director Kathy Raymond said the expansion, which was part of a
larger casino floor renovation, has drawn more players to the already popular
room.
"I think that the love people have for poker hasn't subsided," she said. "It
may be part of the economic environment, but I don't think the interest has
subsided at all."
She acknowledged that smaller casinos are struggling to claim their piece of
the market.
"You really need volume to operate a successful poker room," she said. "The
overhead can't be absorbed by just a few tables."
In the end, the very thing that made poker so appealing -- its air of
tradition and class -- may be its undoing, at least on the gambling floor,
William Thompson said. After all, casinos make their billions by giving people
new and stimulating ways to lose money.
While slot machine developers can roll out a new "Family Guy" or "oodles of
poodles" game ever few months, poker remains unchanged.
"With slot machines, you can keep reinventing them, so it's going to last
longer. They're throwing new wrinkles in all the time," he said.
http://www.yorkdispatch.com/weekend/ci_22696513/vegas-casinos-swap-poker-tables-slot-machines
MGM Resorts International’s ambitious Springfield project would include a mix of new construction and the renovation of some existing architecture over three city blocks.
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LOS ANGELES — Steve Wynn and porn producer Joe Francis faced off before jurors Tuesday, with the casino mogul denying that he threatened to kill the "Girls Gone Wild" founder and saying the accusation is threatening his upscale casinos.
Jurors listened to wildly varying accounts of whether Wynn threatened to hit Francis over the head with a shovel and have him buried in the desert, with the soft-porn producer insisting he heard about the threats from record executive Quincy Jones. Francis testified that Jones told him Wynn made the threats in conversations and emails, but Wynn denies it.
"I've never sent an email in my life," the 70-year-old designer of signature casinos such as The Mirage, Bellagio, Wynn and Encore, told jurors.
Wynn is suing Francis for slander, the latest legal fight in ongoing battles between the two men that include gambling debt that Francis racked up in one of Wynn Resorts Ltd.'s casinos.
Wynn also testified that he has been repeatedly investigated by gambling oversight agencies and the FBI for a presidential commission appointment and wouldn't be allowed to run casinos if he made threats.
"It would be a singularly self-destructive act - incredibly, incredibly stupid," Wynn said.
The billionaire was mostly poised throughout his testimony, his deep voice occasionally quivering when he discussed the potential downfall that Francis' claims could spark.
"I'm sitting here because Joe Francis decided he wanted to destroy my company because he didn't want to pay his marker," Wynn said, using a term to refer to a gambling debt.
Francis was at times jittery and combative toward Wynn's attorney - and argued with a judge who urged him to keep his answers succinct - but maintained Jones gave him good reason to fear Wynn.
"He was trying to save my life," Francis said of the record producer.
Francis acknowledged he never actually read the emails Jones claimed he received. He said he saw one was written in all capital letters but couldn't describe them further.
Jones, who is Francis' next-door neighbor and a close friend of Wynn's, is expected to testify in the trial.
Wynn, who said he had never threatened anyone in his life, said he was concerned that Francis' allegations will hurt his reputation with his thousands of employees in Las Vegas and harm future casino projects.
"If I was a gangster and a criminal, what would that mean to their job security?" Wynn said.
Calling Francis "the most desperate, the most reprehensible" character he has met in more than four decades of work in Vegas, Wynn said he had to sue to protect his honor and business.
"The trouble is Joe Francis' statement stands without the footnote that Joe Francis is a flake," Wynn said.
http://www.huffingtonpost.com/2012/09/04/steve-wynn-joe-francis-lawsuit_n_1856120.html