Showing posts with label Boyd. Show all posts

Monday, September 8, 2014

Caesars: Wait for the IMPLOSION!

Caesars [formerly Harrah's] salivated to invade the Massachusetts market at Suffolk Downs, defeated by NEIGHBORHOOD VOTERS only to walk off in a snit and file a lawsuit that Massachusetts' taxpayers will defend.

New Jersey casinos struggle for survival

Clark Schultz, SA News Editor

Trump Entertainment plans to file a Chapter 11 bankruptcy, according to Bloomberg.
Atlantic City has seen three casinos shut their days already this year as online gambling ventures have failed to make up for diminished traffic.
The Trump development comes on the same day that New Jersey Governor Chris Christie announced that racetracks and casinos in the state offering sports betting won't face prosecution.
Related stocks: BYD, CZR, MGM.

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Saturday, August 23, 2014

NJ: Casino Closings, MGM RESORTS CLEARS ANOTHER HURDLE TOWARD RELICENSING

Casino News

Steven Stradbrooke

Atlantic City Q2 casino revenue down, profit up; MGM clears relicensing hurdle

August 23, 2014

Atlantic City casinos generated 3.5% less revenue in the first six months of 2014 than they brought in during the same period last year. Figures released on Friday by the state Division of Gaming Enforcement (DGE) showed overall casino revenue through June 30 was $1.88b. Gaming revenue was down 3.8% to $1.32b, room revenue fell 3.3%, food & beverage slipped 3.7% while entertainment & other revenue rose 1.5% to $86.4m.

On the plus side, hotel occupancy in the second quarter was up 4.9 points to 83.3% and total gross operating profit rose 34.9% to $83m, reflecting this year’s addition of online gambling revenue and suggesting the casinos are getting better at squeezing every nickel. However, more than half ($43.2m) of those profits were enjoyed by AC’s market-leading Borgata property, which benefited from a recent $88m favorable tax settlement with the city, over $11m of which was booked as revenue in Q2.

Of the three casinos set to close their doors before the end of September, only the Showboat finished the quarter in the black. The Showboat posted a profit of $7.6m, down from $9.5m during the same period last year. Meanwhile, the Trump Plaza lost $3.3m compared to a $143k profit last year, and the bankrupt Revel lost $24.3m, better than the $43.7m loss in Q2 2013.

SAVE IT FOR THE MORNING AFTER
New Jersey Gov. Chris Christie has scheduled a Sept. 8 meeting with city officials, casino operators and labor unions to discuss ways of righting AC’s sinking ship, but the thousands of casino staffers who will soon be out of a job are seeking help from a higher power. On Wednesday, the Atlantic City Fellowship of Churches organized a prayer rally at which Rev. Eric McCoy asked God to “open new doors” for AC’s soon to be unemployed masses. McCoy said the Almighty “had plans for us before casinos existed and he’ll have plans for us after they’re gone.” Plans, just not jobs.

MGM RESORTS CLEARS ANOTHER HURDLE TOWARD RELICENSING
Atlantic City may soon be welcoming MGM Resorts back to the fold. The casino operator, which shares ownership of the Borgata with Boyd Gaming, has been trying to revive the casino license it voluntarily surrendered in 2010 after New Jersey gaming regulators objected to MGM’s Macau joint venture with Pansy Ho, daughter of Stanley Ho, whom the regulators accused of having links to triad activity. MGM put tis [sic] 50% Borgata stake into trust while it looked for a buyer but MGM formally applied to have its AC license reinstated in February 2013 after Pansy reduced her MGM China stake to a minority position.

This week, MGM and billionaire investor Kirk Kerkorian (who holds a 19% stake in MGM) paid New Jersey a $250k fine to settle claims related to former MGM board member Terry Christensen, who was convicted in 2008 for his role in the illegal wiretapping of Kerkorian’s ex-wife. Christensen had continued to work as an MGM consultant after resigning from MGM’s board in 2006 once the wiretapping allegations came to light. MGM spokesman Alan Feldman told Bloomberg the fine was “simply an administrative means of closing a file on a previously resolved matter … in advance of our licensing hearing next month.”

http://calvinayre.com/2014/08/23/casino/can-god-save-atlantic-city/

Saturday, March 8, 2014

Creating NEW Gamblers!

Steven Stradbrooke

85% of Boyd’s New Jersey online gambling customers not Borgata customers

March 6, 2014

Casino operator Boyd Gaming is singing the praises of its market-leading online gambling operations in New Jersey. On a conference call with analysts following the release of Boyd’s Q4 and FY 2013 results, CEO Keith Smith continued to rubbish the notion that online gambling cannibalizes brick-and-mortar casino revenue.

Boyd and MGM Resorts share ownership of Atlantic City’s market-leading Borgata casino, and Smith notes that 85% of its New Jersey online gambling customers to date “have not been active Borgata customers.” Boyd called this “clear evidence” that online gambling is “complementary not competitive” with Boyd’s land-based operations.

Smith acknowledged that Boyd’s online gambling operation – a joint venture with MGM and Bwin.party digital entertainment – didn’t make a “meaningful contribution” to Boyd’s Q4 numbers, but Smith was content knowing the Borgata/PartyPoker platform controlled 43% of New Jersey’s online market (30% via the Borgata alone). Smith expects things to further improve now that the company has tightened up the geolocation problems that hindered the market’s early days. The platform also launched its first 3G and 4G mobile product for Android devices in February and the iOS version is due in the “near future.”

As for its overall performance, Boyd revenue grew 9.1% to $681.5m, thanks mainly to the late 2012 addition of Peninsula Gaming’s operations. Earnings rose 30.4% to $131.5m but costs resulted in a net loss of $47.3m for the quarter, which sounds terrible until you realize the company lost $899.9m in Q4 2012. For the full year, Boyd revenues rose 16.6% to $2.89b while recording a net loss of $80.3m. The company closed out 2013 with total debt of $4.43b. Investors have pushed the stock down nearly 4% in after-hours trading, but that’s far better than the 18.6% drop the stock took when Boyd published its Q3 figures.

The Borgata’s Q4 revenue was up $9.5m — $2.2m of which came via its online operations – to $157.1m. Boyd’s Las Vegas locals market revenue was flat at $148.6m while the downtown Las Vegas segment saw revenue rise 3.7% to $59.8m. The midwest and south segment fell 8% to $196m and the Peninsula segment returned $119.9m.

Looking further afield, Smith described Japan as “another interesting possibility” for expansion. Smith says Boyd is no longer content to confine itself to US shores and has begun “examining the landscape” and making local connections to gain a sense whether Japan would be “a good fit” for the company’s growth strategy. Really, all Smith needs to do is ask himself one question – are you prepared to spend $10b – but Smith says the slow pace of legislation means that “we’re probably pretty far away from worrying about how to finance it.”

http://calvinayre.com/2014/03/06/casino/boyd-gaming-new-jersey-online-gambling-not-cannibalizing-borgata/

Wednesday, November 13, 2013

Salivating to Invade New York, Macau Riches

The race for New York casino licenses starts in January • 7:47 AM

New York aims to issue RFPs to casino operators wanting to set up shop in the state this January with a goal to select licensees later in the year, according to Hedgeye's Todd Jordan.
In a New York state of mind: CZR, MGM, WYNN, PENN, BYD.

Macau residents get a cut of casino riches • 9:36 AM

Macau announces it will distribute 9K pacatas ($1,127) to each resident to help make up for the growing costs of living in the casino-rich region.
The territory brought in 95B pacatas ($11.89B) this year from taxes on gaming operations.
The incredible riches brought in by the casino industry from Macau has increased the pressure to keep the local populace contented.
Related stocks: MPEL, LVS, WYNN, MGM.

Tuesday, October 22, 2013

Borgata Casino Value Is Cut by $1.4 Billion in Tax Court Ruling, 61% REDUCTION

Borgata Casino Value Is Cut by $1.4 Billion in Tax Court Ruling

By Christopher Palmeri & Elise Young - Oct 21, 2013

Boyd Gaming Corp. (BYD) and MGM Resorts International (MGM) won a 61 percent reduction in property taxes on their Borgata Hotel and Casino in Atlantic City, a cut reflecting the decline in business there.

The assessed value of the resort, New Jersey’s top-grossing casino, was reduced to $870 million from $2.26 billion for 2010, according to an Oct. 18 decision released today by the Tax Court of New Jersey.

The tax reduction will boost profit for the casino’s owners while reducing revenue for the city. The Borgata, under its previous valuation, represented about 16 percent of Atlantic City’s $14.4 billion tax base, according to Michael Stinson, the city’s director of revenue and taxation.

“We certainly didn’t expect this,” Stinson said in a telephone interview. “The city’s expert came up with a value of $2.3 billion.”

The companies will be owed refunds totaling $48.8 million for the 2009 and 2010 tax years, or by about 61 percent, as well as interest, according to calculations by A. Paul Genato, a tax attorney in Princeton, New Jersey, who wasn’t involved in the case.

“This is a devastating blow to Atlantic City,” Genato said in an e-mail.

Stinson said the city will appeal the decision. “We certainly don’t have $50 million sitting in the bank,” he said.

Increased competition for players on the East Coast has hurt Atlantic City casinos prospects “for the foreseeable future,” according to the decision.

Casinos in the city routinely challenge their tax valuations, and the Borgata decision was the last for the 2010 tax year, Stinson said. Boyd and MGM, which co-own the property, have challenged the 2011 and 2012 assessments as well, he said. The decision, if it stands, will impact values for all of the casinos going forward, Stinson said.

Boyd, based in Las Vegas, fell 2.3 percent to $13.72 at the close in New York. MGM International, also based in Las Vegas, rose 0.4 percent to $20.77.

http://www.bloomberg.com/news/2013-10-21/borgata-casino-value-is-cut-by-1-4-billion-in-tax-court-ruling.html

Sunday, September 15, 2013

LOW WAGE CASINO WORKERS STRIKING!

Posted September 13, 2013 - 1:23pm Updated September 13, 2013 - 1:42pm

Culinary Union to Wall Street: Prepare for strike

Culinary Union members and supporters rally in front of the Cosmopolitan in Las Vegas Friday, June 14, 2013. The union is calling for a contract for workers at the casino. (John Locher/Las Vegas Review-Journal)

By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL

The Culinary Union has taken is its contract negotiations on the Strip to Wall Street.

The research arm of the labor organization that represents 44,000 workers whose contracts expired June 1, authored a two-page report that was sent to the investment community, saying the union is preparing for the first citywide strike by hotel workers since 1984.

The message from the union targeted primarily MGM Resorts International and Caesars Entertainment Corp., which operate some 20 Strip-area hotel-casinos, and Boyd Gaming Corp., which has two downtown casinos where contract expired.

The Culinary has been joined in the contract talks with Bartenders Local 165. The contracts cover noncasino departments, such as housekeeping, hotel operations and food and beverage.

“Since June, the unions have held several rounds of talks with the two major multiproperty operators, MGM and Caesars,” Culinary Local 226 research director Kin Liu wrote in the report. “Simmering tensions in negotiations now appear likely to boil over as the weather cools and the city enters its busy fall season.”

Casino company representatives were somewhat perplexed by the tone of the comments from the union.

MGM Resorts spokesman Gordon Absher said the talks with the union have be “substantive” and the company is confident a contract agreement will be reached.

“We feel this new leaflet does not accurately reflect our situation,” Absher said. “Joint subcommittees continue to meet and make progress toward a mutually beneficial conclusion. However, the Unions are negotiating with a number of companies simultaneously. Not all talks may be progressing as well as ours.”

Caesars Entertainment spokesman Gary Thompson said the company has continued “to meet regularly with the union to work toward resolution of outstanding issues. (We) believe we will be able to reach an agreement without a strike.”

Casino operators have signed extensions for expired contracts while talks take place. But union organizers have ratcheted up the rhetoric.

Earlier this year, the union launched a website — vegastravelalert.org — which warns Las Vegas visitors and convention planners of the ongoing contract negotiations and that “a labor dispute could affect your event.”

Liu, in his report, told investors 53 percent of MGM Resorts’ revenues and 34.6 percent of Caesars revenues came form their Strip casinos in the second quarter.

“As all the companies have shown no urgency toward working out a settlement, union member have started to sign up for ID cards in preparation for a strike,” Liu wrote.

Union members have marched on the Strip on several occasions, but the target of the pickets has been The Cosmopolitan of Las Vegas, where union and resort officials have been unable to come to agreement on a contract covering the resort’s non-casino workers.

Culinary members voted in May to approve a 60 percent increase in dues to create a fund that would support workers in the event of a strike.

Liu told the investment community there has been progress on some matters of the contracts, such as updating immigrant worker protection language and changing payroll systems. However, significant issues remain unresolved, he wrote.

“The union’s recent report was the first of what will be ongoing communications to gaming investors and Wall Street analysts,” Culinary spokeswoman Yvanna Cancela said. “Future updates will focus on a variety of issues including the challenges facing gaming companies in negotiations in Las Vegas.”

In the union’s report, Liu claims the company have not made proposals regarding wages and benefits. Caesars proposed an idea to tie wage increases to net revenue growth in Las Vegas. The unions have offered proposals for securing long-term healthcare, pension, and other benefits.

Boyd Gaming spokesman David Strow said the current talks have focused on Strip resorts.

“However, we expect to begin talks soon, and are optimistic we will once again reach an amicable resolution, as we have in the past,” Strow said.

http://m.reviewjournal.com/business/culinary-union-wall-street-prepare-strike

Sunday, June 23, 2013

Mississippi law firms perfecting sucking discretionary income from the local economy

Someone's getting rich from casino gambling and it's not the Gambling Addicts!

Mississippi law firms dedicated to gambling issues

LISA MONTI, Mississippi Business Journal
Memphis Commercial Appeal
Posted June 23, 2013

JACKSON, Miss. (AP) — Gutsy casino entrepreneurs helped launch Mississippi into the gambling business more than 20 years ago, and today a new breed of entrepreneurs are buying up properties for their portfolios.

One constant in the casino market's maturation process: lawyers. At the beginning, there were regulations to learn and transactions to clear for brand new clients. Now firms have teams of lawyers dedicated to handling gambling issues.

Tommy Shepherd, Gaming Industry Team co-leader with Jones Walker, and Danny McDaniel, chairman of Baker Donelson's Gaming Industry Service Team, were among the first to learn the ropes of the new industry.

Shepherd recalled that in the early 1990s "true entrepreneurs" came to Mississippi and pioneered the gambling industry.

"After that, some of the entrepreneurs took their companies public, like Lyle Berman and his company, Grand Casinos. Then we entered a period of consolidation and acquisitions by private equity groups," Shepherd said.

With the downturn in the economy, he said, some companies are taking stock of their Mississippi casino holdings and are looking at whether they should keep them in their portfolios.

"That evaluation process and the bankruptcies of several Mississippi gaming companies may result in sales of some properties to new entrants to the gaming industry, such as Golden Nugget Gaming in Biloxi," Shepherd said. "In other words, we may be going back to the future with entrepreneur ownership of Mississippi casinos."

They'll still need their lawyers. So will the makers of slots and table games, casino suppliers and the banks that are involved in gambling.

"Whenever there's a change in ownership, that triggers gaming approvals or when there is a new financing, we play a role in the transactions," Shepherd said.

Shepherd, who spends "90 percent plus" of his practice devoted to gambling, put together a legal team that's considered one of the state's largest gambling practices. The law firm publishes the widely read Mississippi Gaming Law Blog at www.msgaminglaw.com.

Danny McDaniel practices exclusively in gambling law in Mississippi and Louisiana. He has been involved with Mississippi's casino "since day one." He recalled the developers of the state's early riverboat industry as "really dynamic, independent entrepreneurs like Lyle Berman and John Connolly" who became so successful "they had investment bankers throwing money at them."

Now gambling has spread throughout the country and it's back in the hands of independent entrepreneurs, he said. Nowadays McDaniel works mostly with wealthy independent entrepreneurs who are developing projects "when most publicly traded companies are facing competition and focusing on the East Coast and other places" besides Mississippi.

That's a far cry from the early days that McDaniel describes as the build-it-and-they-will-come era.

"Back then you put up a casino and people waited in line and paid $5 for the privilege of gambling," he said.

The new independent casino entrepreneurs aren't bound by corporate restrictions or bureaucracy.

"They can move quicker and more decisively," said McDaniel.

Shepherd and McDaniel both say they, like most everybody else, had no idea that gambling would grow into such a large industry has it has in Mississippi.

Shepherd said his first gambling client in 1992 had a small project on the coast that "didn't go anywhere," but it introduced him to the new statutes and the Gaming Commission members.

"I didn't think many people except a few visionaries thought we would have anything like this in Mississippi today," said Shepherd.

"We thought we would have a decent practice in it and many good clients. I don't think any of us who do regulatory work thought it would be as much or as consistent as it is."

The statutes and regulations have stayed substantially the same for many years, Shepherd said, but there's some tweaking from time to time.

McDaniel had recently left a job in the U.S. Attorney's Office civil division and joined Heidelberg and Woodliff in 1991. Five years later he moved to Phelps Dunbar where he began its gambling practice. He's been with Baker Donelson since 2010.

"When gaming came in, I ended up representing one of the first gaming companies on the coast and it just went from there. I thought it was just something else I would do in my practice. But once I started doing gaming work it was hard to go back to my previous practice."

Shepherd said the most memorable person he has met in the gambling industry was Bill Boyd, founder of Boyd Gaming.

"He was remarkable in that he is not what you might have expected a gaming executive to look and act like," said Shepherd. "He is a genuine person, a kind and decent man."

Today's crop of entrepreneurs aren't like Bill Boyd, who came up in the gambling industry, McDaniel said. They're businessmen like Carl Icahn and Landry's Restaurant founder Tilman Frittata, who see casinos as a part of their holdings.

"The reason this is so much fun is because I'm dealing with some of the wealthiest and most dynamic people in the world," McDaniel said.

Six clients have been on Forbes' World Billionaires List.

[Of course they have been because this is a massive redistribution of wealth.]

"They're all extremely bright and dynamic and have this self confidence that is just amazing," McDaniel said. "It's a fascinating way to make a living."

http://www.commercialappeal.com/news/2013/jun/23/mississippi-law-firms-dedicated-gambling-issues/

Saturday, March 23, 2013

Genting Amends Florida Proposal

Genting project to launch condo sales by 2014

March 15, 2013 10:00AM

Miami Herald building

The Genting Group plans to launch sales as early as next year at their new condominium project at the soon-to-be-redeveloped waterfront headquarters of the Miami Herald, the eponymous paper reported. Genting also hopes to sign with a four-star hotel operator to develop the project’s third tower by year’s end, Bill Thompson, senior vice president of development for Resorts World Miami, told the Herald. The condo tower will include “several hundred units,” the Herald said.
The three towers will run along a 50-foot wide promenade that will connect Genting’s Resorts World Miami project to Museum Park, downtown Miami’s museum development that includes the Patricia and Phillip Frost Museum of Science and the Perez Art Museum of Miami.

“We’ve decided to go with a phased approach,” Thompson told the Herald. “That seems to be more conducive with what’s acceptable in Miami. You start out with the waterfront property and that improves the value across everything else. Then you stay fluid based on what’s happening in the marketplace.” [Miami Herald] –Christopher Cameron

Tags: genting group, miami herald headquarters, resorts world miami

http://therealdeal.com/miami/blog/2013/03/15/genting-project-to-launch-condo-sales-by-2014/

Genting switches casino plans to hotel in Florida March 18, 2013 9:57 AM by Staff & Wire Reports

Malaysia’ Genting Group, successful with a major slots facility adjoining Aqueduct racetrack in New York and the recent buyer of remnants of the failed Echelon development on the Las Vegas Strip from Boyd Gaming Corp., has downsized its plans for a project in Miami, Florida.
Initially, after purchasing The Miami Herald building for $236 million, the company announced grandiose plans for a $3.8 billion project for the 14 acres that would have included a massive casino, skyscrapers, a new three-mile Baywalk, four hotels with a total of 5,200 rooms, and two residential towers.

Unfortunately for the company, the state legislature failed to approve gambling plans for south Florida.

Now, Genting’s Resorts World Miami will offer a more modest development that will focus on a luxury hotel and two condominiums.

According to company spokesman Tadd Schwartz, the first phase will be on the Miami Herald site and will include a few stories of restaurants, shops, meeting rooms and underground parking that will have an open-air vibe. The condos and hotel will sit above that podium.

Obviously, the company still has hopes of getting a casino law passed. To do so, however, it will have to overcome objections from existing casino operators, horse track owners, Disney World and the Florida Chamber of Commerce.

http://www.gamingtoday.com/articles/article/40598-Genting_switches_casino_plans_to_hotel_in_Florida

Thursday, November 1, 2012

Sandy: MGM, Boyd Borgata and Junk Bonds

Atlantic City Casino Borgata Bonds Fall as Resorts Stay Closed

By Matt Robinson and David Holley on November 01, 2012

Bonds of Borgata Hotel Casino & Spa, owned by MGM Resorts International (MGM) and Boyd Gaming Corp. (BYD), fell the most in more than nine months as damage from Hurricane Sandy keeps the second-largest U.S. gaming site closed.

The casino’s $393.5 million of 9.875 percent notes due August 2018 have fallen 2.25 cents on the dollar since the largest tropical storm in the Atlantic slammed the East Coast on Oct. 29. The securities traded at 99.5 cents to yield 9.98 percent at 2:27 p.m. in New York, the biggest decline since Jan. 25. The company’s $394.4 million of 9.5 percent secured notes due October 2015 have dropped 2.4 cents to trade at 100.1 cents on the dollar with a 9.47 percent yield since the storm.

Borgata, owned by the Marina District Finance Co. joint venture, had third-quarter revenue of $187.1 million, compared with $202 million in the similar period last year, according to Boyd Gaming, which announced the results in a statement with its own earnings. Adjusted earnings before interest, taxes, depreciation and amortization was $33.4 million, down from $50.3 million in the same period a year ago.

“This was a lot lower than we thought,” said Susan Berliner, an analyst at JPMorgan & Co. She said in a telephone interview that she was “shocked” because the company had provided guidance of $47 million to $49 million. JPMorgan estimated $42 million, she said. “The monthly numbers appeared to be holding up OK, so that’s why it was pretty surprising.”

Storm Recovery

Atlantic City, which is second only to Las Vegas in gambling revenue, sustained limited damage, compared with other New Jersey Shore areas. Casinos may report lower revenue because of damage to roadways and the loss of regular customers, who may be preoccupied with a storm recovery, according to Fitch Ratings.

“The bigger question for the industry remains the status of roadways and other infrastructure in the Atlantic City and feeder areas,” Fitch analysts Michael Paladino and Bill Warlick wrote in a report today. That “may limit the ability of casino employees and customers to get to Atlantic City’s 12 gaming properties easily.”

Casinos in Atlantic City have been closed since the night of Oct. 28, a day before Hurricane Sandy hit the state. Damage to the resorts is minor, according to the Casino Association of New Jersey.

The impact from Hurricane Sandy may force Marina District Finance, whose only asset is the Borgata, to seek a covenant amendment to avoid breaching a minimum cash flow requirement in its bank-loan agreement, according to Moody’s Investors Service.

“Because it’s a single property, they would be at risk, especially given the covenant situation,” Peggy Holloway, senior credit officer at Moody’s, said in a telephone interview.

High-yield, high-risk, or junk, debt is rated below Baa3 by Moody’s and BBB- at Standard & Poor’s. Issuers rated in the Caa category by Moody’s “are subject to very high credit risk.’

http://www.businessweek.com/news/2012-11-01/atlantic-city-casino-borgata-bonds-fall-as-resorts-stay-closed

Sunday, October 14, 2012

Targeting the Young Gambling Addicts on the Internet

Casino Companies Are In For an Overhaul

By Travis Hoium, The Motley Fool
10/12/12

In just a few years' time, the casino business that we've become familiar with may be changed completely. New technology and an expanded acceptance of mobile technology by regulators will begin turning the traditional casino upside down.

Slot machines may be replaced by iPads, table games will be electronic, you will be able to play from your room, and online gaming will be everywhere.

This isn't a negative for gaming companies. In fact, it creates a huge opportunity and it may open up gaming to a new breed of consumer.

The revolution is here

Bally Technologies (NYS: BYI) and International Game Technology (NYS: IGT) were granted the first online game licenses in Nevada earlier this year, and casino operators Boyd Gaming (NYS: BYD) , Stations Casinos, and the Golden Nugget were the first casinos recommended for approval for intrastate online poker . Online poker was big business in the U.S. until the Feds shut down Poker Stars and Full Tilt Poker, and this is another step on the way to a comeback.

The Global Gaming Expo last week also showed a new generation of games for casinos. No longer will casinos have to buy a $20,000 slow machine when an iPad can hold more games and costs only $500. The possibilities for games begin to open up pretty quickly with devices like this.

Opening up to a whole new customer

Some casino games have always been intimidating to play. Once you move beyond your first penny slot machine as a new gambler it's intimidating to sit down at a blackjack table or play poker against real people. Mobile gaming and new devices can alleviate some of these jitters. Online gaming and mobile gaming is an opportunity to expand the customer base for gaming companies at a time when gaming has stagnated in many locations.

Forcing the Fed's hand

This may eventually push Congress to lay out a framework for regulating and controlling online poker and other online games of chance. Nevada is the first to go forward with online gaming, but others will soon follow. Even those who want online poker legalized admit that federal regulation makes more sense than 50 different sets of rules.

Most casino operators would jump at the chance to offer gaming on a federal level. MGM Resorts (NYS: MGM) and Caesars Entertainment (NAS: CZR) would be two of the biggest players in all likelihood. The companies own some of the world's most well-known gaming brands including Caesars' World Series of Poker.

But not everyone is bullish on online games. Las Vegas Sands (NYS: LVS) chairman Sheldon Adelson has spoken out against online poker and hasn't made any indication he intends to participate in the potential boom in the gaming business. We'll see if he changes his tune if MGM and Caesars start raking in profits from online games.

The next gaming boom

The companies that have benefited from gaming's boom in Asia may not be the companies that benefit from an online or mobile boom in the U.S. Caesars and MGM have been dogged by debt in recent years, but they would be huge beneficiaries of online games. Las Vegas Sands may be left in the dust online unless Adelson changes his tune.

But the big winners may be IGT and Bally's. These companies will provide the technology needed for online gaming and will open up a new revenue stream. The gaming revolution isn't a done deal yet, but it's time to start preparing for it because policymakers aren't stopping it.

For many companies, successfully capitalizing on a booming Chinese economy is like winning the jackpot. That's certainly the case for gaming company Las Vegas Sands, which made a big bet on Macau gaming about a decade ago that's paid off in spades. The company is now looking to spread its empire further, but will it be able to replicate its prior successes? Learn about all these opportunities, and the risks they pose, in our brand-new premium report on Las Vegas Sands. We're providing a full year of analyst updates to go with it, so make sure to claim your copy today by clicking here.

http://www.dailyfinance.com/2012/10/12/casino-companies-are-in-for-an-overhaul/

Sunday, September 23, 2012

Boyd Gaming seeks to have $75M death lawsuit dismissed

Boyd Gaming seeks to have $75M death lawsuit dismissed against IP Casino (updated)

Published: Saturday, September 22, 2012

(Joshua Dahl/Correspondent) The IP Casino Resort Spa is seen in this 2011 file photo.

JACKSON, Mississippi --- A gambling company has asked a federal judge to dismiss a lawsuit that claims a Mississippi casino served a heavily medicated man so many free drinks that he collapsed in the bathroom of his hotel room and died.

The lawsuit against IP Casino Resort and Spa in Biloxi was filed in U.S. District Court in Gulfport in July and seeks damages of $75 million. The suit claims casino workers ignored pleas from Bryan Lee Glenn's relatives in JACKSON, Mississippi --- A gambling company has asked a federal judge to dismiss a lawsuit that claims a Mississippi casino served a heavily medicated man so many free drinks that he collapsed in the bathroom of his hotel room and died.

The lawsuit against IP Casino Resort and Spa in Biloxi was filed in U.S. District Court in Gulfport in July and seeks damages of $75 million. The suit claims casino workers ignored pleas from Bryan Lee Glenn's relatives in August 2009 and continued serving him free drinks well after he was visibly intoxicated.

The casino, formerly known as Imperial Palace, changed hands after Glenn's death. Boyd Gaming bought the property in 2011.

Boyd Gaming argues in court filings this week that "Mississippi law is abundantly clear that one injured as a result of his on voluntary intoxication has no viable claim against a casino which served him alcohol."

Michael Holleman, lawyer for Glenn's relatives, didn't respond to a message seeking comment on the filing.

Mississippi has a "dram shop" law that says businesses can be held liable if they serve alcohol to someone who is drunk and that person later injures or kills someone else. But Boyd Gaming sites a 1986 case, Cuevas v. Royal D'Iberville Hotel, in which the Mississippi Supreme Court ruled a business is not liable when a person voluntarily drinks "and then by reason of his inebriated condition, injures himself."

In the 1986 case, a woman said the hotel lounge served her alcohol after she was visibly drunk, a factor that contributed to her fall over a railing to the hotel lobby floor 30 feet below. She was seriously injured.

In the lawsuit against Boyd Gaming, Glenn's relatives claim they pleaded with casino employees to cut him off from alcohol because he was on medication for physical and mental ailments.

Glenn, 30, had taken prescription painkillers as well as anti-psychotic medications in the three weeks before his death, the lawsuit said. He was being treated for physical injuries as well as psychosis and hallucinations. Glenn had suffered a traumatic brain injury in a 2004 four-wheeler accident and back injuries in a 2007 car wreck.

Glenn and his mother and brother lived in coastal Long Beach, Miss., but lost everything to Hurricane Katrina in 2005 and eventually settled in Virginia. They returned to Mississippi with a friend in August 2009 to pick up Glenn's check from a settlement from a previous lawsuit and to look for a place to live. They were staying at the IP resort.

Glenn picked up the $15,000 check on the morning of Aug. 6, 2009, and the group planned to use some of the money on a deposit for a place to live. But once back at the resort, Glenn began betting up to $1,000 a hand on blackjack and ordering two drinks at a time. The suit says a dealer, pit boss, waitress and security guard were among those who refused to intervene after Glenn was drunk and his family begged the casino to stop serving him.

Glenn's relatives left the casino to take someone home. When they returned, his brother, mother and a friend found him in his hotel bathroom at the resort. Glenn's friend, trained as an emergency medical technician, tried to revive him but he was taken to a hospital and pronounced dead.

http://blog.gulflive.com/mississippi-press-news/2012/09/boyd_gaming_seeks_to_have_75_d.html

Saturday, July 28, 2012

Why You Shouldn't Bet on Gam[bl]ing

Why You Shouldn't Bet on Gaming [unless, of course, you're like the fools in Massachusetts who fail to see this.]

Don't roll the dice with these companies.

By John Divine

updated 7/27/2012 5:25:25 AM ET

Casino companies Boyd Gaming, Penn National Gaming, and Las Vegas Sands all reported quarterly earnings this week, and they weren't pretty. In fact, you'd probably be better off hitting the roulette tables than letting your money ride on gaming stocks. Let's take a brief look at their results to understand why.

Oh, Boyd

Boyd closed down more than 17% for the day on Tuesday, and is down about 45% since its 2012 peak in February.

But why has the stock taken such a beating? Probably because Boyd missed both its EBITDA and EPS estimates. On top of that, Boyd has made a point to acquire abysmal locations in spots as varied as Mulvane, Kan., Amelia, La., and Dubuque, Iowa.

Boyd's only potential advantage over its competition is its miserable net margin of 0.2%. This is a potential catalyst because if Boyd is able to increase net margins by as little as 100 basis points, profits will multiply six times over.

The hope is that the recent Southern and Midwestern acquisitions will boost the company's presence in those regions, and higher margins will follow. It's likely that Boyd's astronomical P/E -- it trades for more than 90 times earnings -- takes this into consideration already and is counting on more impressive margins moving forward.

Penn National: nothing special

Penn National Gaming reported results that were a bit more tolerable, but still nothing that wowed investors.
That said, there were a few warning signs I noticed from the conference call:

Only half of Penn National's properties posted year-over-year EBITDA growth.

Not an insignificant portion of time was spent debating the futures of properties in Columbus vs. Toledo -- not exactly a sign of exciting growth prospects.

The company barely missed revenue estimates, reporting $712 million vs. an expected $722 million.

Management announced it was "pleasantly surprised ... with the good weather and the extra day in February." Any company surprised by the fruits of a leap year could be in trouble.

Maybe Las Vegas Sands will bring some good news?

Maybe not
Las Vegas Sands -- unlike Boyd and Penn National -- pays a dividend, and it's by far the largest and most successful company considered here. The current dividend yield is around 2.7%, and its market cap stands at about $30 billion. For some perspective, Penn National's has a market cap around $3 billion, while Boyd's is less than half a billion.

However, even Las Vegas Sands is not immune from sector-wide issues. Its profits fell dramatically from the same quarter last year, failing to meet analyst expectations.

The company announced net income of just $240.6 million, nearly 35% less than second-quarter earnings in 2011 -- in that time the stock has fallen just a bit more than 20% itself. To reverse this trend, Las Vegas Sands will have to count on Macau and Singapore as continued areas of growth. For an idea of how dominant these markets have become, consider the numbers: Macau and Singapore property EBITDA averaged almost $400 million in the second quarter, compared to the paltry $64 million EBITDA of Vegas properties.

Better luck next time
Unfortunately, these three earnings reports seem to be telling investors that the gaming industry is slowing. If these results serve as a snapshot for the health of casino companies, they may want to retake the picture.

The gambling sector is reliant upon emerging, rapidly expanding economies for much of its future growth. The Motley Fool's free report, 3 American Companies Set to Dominate the World, examines three companies strategically seizing unique opportunities in emerging markets in order to dominate them tomorrow. To learn more, read about it for free right here!

Monday, June 4, 2012

Can you hear me now? The answer is NO!

The Gambling Industry and elected officals haven't figured out that the answer is NO!

The contrary Massachusetts voters will REPEAL THE CASINO DEAL!

Don't look for us top bail out a losing Industry!

Debt crisis worries gaming stock investors

1 June 2012

by Howard Stutz

LAS VEGAS, Nevada -- Gaming stocks nosedived in May as investors grew worried over foreign debt matters and mixed messages coming from company earnings reports.

Of the 12 publicly traded casino operators and gaming equipment providers followed by Las Vegas financial adviser Applied Analysis, 10 saw decreases in average daily stock price during the month.

Only the share prices of regional gaming operators Ameristar Casinos and Penn National Gaming, which owns M Resort, enjoyed slight increases.

When compared with May 2011, the gaming sector was off 11.6 percent while the broader market edged slightly upward by less than 1 percent.

The declines sent the Applied Analysis Gaming Index tumbling almost 61.5 points, to 435.74. The index accounts for more than 300 market variables and economic indicators.

Applied Analysis principal Brian Gordon said the disappointing initial public offering by social media giant Facebook did not have an effect on the gaming sector. Facebook opened for trading at $38 a share on May 18 on the Nasdaq Global Select Market but has since tumbled, closing at $29.60 Thursday.

"While the Facebook IPO reportedly created issues at Nasdaq and created significant buzz in the investment community, gaming sector stocks generally remained tied to market fundamentals and investor speculation," Gordon said. "Gaming stocks have generally been challenged in recent days with international economic concerns persisting and other external factors."

Investors, Gordon said, have been focused on gaming expansion. In May, Caesars Entertainment opened a casino in Cleveland, while Penn National opened Ohio's second casino on Tuesday, in Toledo.

Las Vegas Sands Corp. and Wynn Resorts Ltd. both said they wouldn't bid on a casino license in Massachusetts.

Because they know Massachusetts voters will REPEAL THE CASINO DEAL!

"Expansion opportunities in emerging markets for selected operators were made clearer," Gordon said.

Meanwhile, Boyd Gaming Corp.'s announcement that it would spend $1.45 billion to acquire regional casino operator Peninsula Gaming, which has casinos in Kansas, Iowa and Louisiana, is being viewed as a foreshadowing event.

"The sector also witnessed key acquisitions in regional markets as operators look to expand their footprints when opportunities present themselves," Gordon said.

The four gaming manufacturers followed by Applied Analysis experienced declines in average daily stock price. But slot machine makers received good news Wednesday when an Ohio judge through out a legal challenge, paving the way for the state's seven racetracks to add casinos with a cumulative 17,500 video lottery terminals.

"The obvious winners are the slot manufacturers," Janney Montgomery Scott gaming analyst Brian McGill said. "(Ohio) will give a much needed boost to the calendar of openings in 2013 and 2014. There is a lack of new openings in both years."

Caesars, Penn National and Pinnacle Entertainment own four of the seven racetracks.

"Yesterday's favorable outcome is also positive for a hand full of casino operators," Roth Capital Partners gaming analyst Todd Eilers told investors.

Average Daily Stock Price
Apr 2012 May 2012 Change
Ameristar Casinos $18.35 $18.69 1.89 percent
Boyd Gaming Corp. $7.91 $7.29 -7.80 percent
Caesars Entertainment $14.17 $13.54 -4.46 percent
Las Vegas Sands Corp. $58.41 $50.18 -14.09 percent
MGM Resorts Int. $13.50 $11.45 -15.78 percent
Penn National $43.45 $45.09 3.78 percent
Pinnacle Entertainment $11.27 $10.15 -9.90 percent
Wynn Resorts Ltd. $127.08 $111.99 -11.87 percent
Bally Technologies $46.97 $46.27 -1.48 percent
International Game Tech. $16.33 $14.65 -10.27 percent
Shuffle Master $17.24 $16.13 -6.45 percent
WMS Industries $23.94 $21.80 -8.96 percent
SOURCE: Applied Analysis

http://www.casinocitytimes.com/news/article/debt-crisis-worries-gaming-stock-investors-201141

Saturday, June 2, 2012

The Gambling Industry Never Wants to Pay Its Fair Share

Casinos Seek Halt to Collection of Back Taxes

CARSON CITY, Nev. (AP) - Nevada casinos are pressing the state Department of Taxation to halt the collection of more than $200 million in back sales taxes due on past complimentary meals given to casino patrons and employees until various legal issues are decided.

The issue surfaced at a public hearing last week in Carson City held by taxation department officials, the Las Vegas Sun reported.

The department said earlier this year it would begin imposing a sales tax on comped meals as of Feb. 15 and assess a 25 percent penalty as well as 9 percent annual interest on all taxes not paid by July 31.

The agency, however, is still trying to adopt regulations on how to collect the sales tax.

Attorney Josh Hicks, who represents casinos and retail interests, noted litigation over the sales tax on complimentary meals has been going on for a long time.

He said Boyd Gaming already has appealed one Nevada Tax Commission decision concerning the issue, and Harrah's is likely to appeal another. The tax commission has denied Boyd Gaming a refund of $21 million and Caesars Entertainment a refund of $31 million.

Hicks urged the department to delay any decision until the Nevada Supreme Court rules on the matter. The case is still pending in district court.

But department officials say they'll move forward with processing the regulations on how to collect the sales tax, and the issue will then be up to the tax commission.

The department said earlier this year it would begin imposing a sales tax on comped meals as of Feb. 15 and assess a 25 percent penalty as well as 9 percent annual interest on all taxes not paid by July 31. But the regulations are needed before that can happen.

The tax commission, at a June 25 meeting, is expected to consider the regulations and whether the statute of limitations applies to some of the back taxes.

The issue has dragged on for years and has huge consequences for state coffers and casino companies in particular, as well as other businesses such as restaurants and taverns that provide meals to employees.

In 2008, the Nevada Supreme Court, in a ruling favoring John Ascuaga's Nugget in Sparks, struck down imposing a use tax on free meals but left unresolved the question of whether such meals are subject to sales tax.

Since then, casinos around the state have petitioned for refunds of those use taxes totaling hundreds of millions of dollars.

http://www.kolotv.com/home/headlines/Casinos_Seek_Halt_to_Collection_of_Back_Taxes_155094915.html

Boyd Gaming buys Peninsula Gaming

Peninsula Gaming, owner of 2 casinos in Iowa, is sold
DesMoinesRegister.com
Peninsula Gaming LLC, owner of Iowa casinos in Dubuque and Worth County, has been sold for $1.45 billion to Las Vegas-based Boyd Gaming Corp., officials said Wednesday. The Dubuque Diamond Jo Casino, located along the Mississippi River in downtown ...

CORRECT: Boyd Gaming To Buy Peninsula Gaming For $745 Million
Wall Street Journal
This is the correct version:) By AD Pruitt and Alexandra Berzon NEW YORK (Dow Jones)--Boyd Gaming Corp. (BYD) said Wednesday it will acquire privately held casino operator Peninsula Gaming LLC at a cost of $745 million and is also refinancing $700 ...

Boyd Gaming to buy Peninsula Gaming in $1.45B deal
MarketWatch
By Drew FitzGerald Boyd Gaming Corp. (NYSE:BYD) has agreed to acquire fellow casino operator Peninsula Gaming LLC for $200 million in cash, expanding the US gambling company's footprint in the Midwest and South. Under the deal, Boyd will take over ...

Boyd Gaming To Buy Peninsula Gaming For $1.45 Bln, Shares Up
NASDAQ
(RTTNews.com) - Casino operator Boyd Gaming Corp. (BYD), Wednesday said it has agreed to buy Peninsula Gaming LLC for $1.45 billion, giving it the Dubuque, Iowa-based company's five casinos. Following the news, shares of Boyd rose over eight percent on ...

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