Magnificent gaudy structures erected for the ultimate 1% SCAM to empty your wallet, your 401K, your employer's funds, rack up credit card debt....

All built on a House Of Cards created by banks that will collapse, leaving taxpayers to pick up the tab.....

MOST VEGAS CASINOS IN DEBT, BIG TIME

Stan Evans | January 1, 2017

House always wins? While operating a Vegas casino seems like an obvious money maker, the cost of these massive buildings has most of these jackpot makers in the red long-term.

For the last few years, we’ve been reading about casino empires crumbling before our eyes.  In 2012, an article ran in USA Today that the economic downturn had created huge, unpayable debts in Vegas gambling properties.  These debts were incurred in brighter economic times but fell victim to the Great Recession.

One of the conglomerates mentioned in the USA Today article, Caesar’s Entertainment, was able to stall bankruptcy for three more years but finally filed for bankruptcy protection in 2015.

Donald Trump learned the hard way how ephemeral big projects can be.  He took over the Taj Mahal Casino in Atlantic City and offered 14% interest on bonds to finance construction.  His company defaulted on its commitments soon after.  In short, a big building project may signify much smoke but little fire.

MGM Resorts International is trying to expand in both the US and Asia.  Although gambling is on the rise in the US, it is not at all certain that Vegas casinos will feel the enough of said growth to forestall bankruptcy.

The Fontainebleau Resort was going to cost 2.7 billion dollars but the Bank of America pulled out in 2014 and left a shell of a building in its wake.

It isn’t just the economic downturn that has threatened so many Vegas gambling properties.  Many other jurisdictions have legalized casinos in recent years.  This and online casinos make it difficult for Vegas casinos to bring in the customers they need to realize the profits that will pay off their massive debts.  Competition certainly reigns supreme even in the world of Vegas gambling!


https://www.gamingpost.ca/canadian-casino-news/vegas-casinos-debt-big-time/

Mohegan Tribal Gaming Authority Announces Closing Of Refinancing Transactions

NEWS PROVIDED BY

Oct 14, 2016
UNCASVILLE, Conn. Wilkes-Barre, Pennsylvania, announced today the closing of its previously announced refinancing transactions, including the following:

Senior Notes Offering

October 14, 2016, the Authority closed its previously announced private placement of 7.875% senior notes due 2024 (the "New Notes") issued pursuant to an Indenture, dated as of the date hereof, among the Authority, as issuer, the Mohegan Tribe of Indians of Connecticut (the "Tribe"), the guarantors party thereto, and U.S. Bank National Association, as trustee.

The Authority applied the net proceeds from the issuance of the New Notes, together with borrowings under the Authority's new senior secured credit facilities described below, to (i) finance the repayment, repurchase and redemption of certain of the Authority's previously outstanding indebtedness, including, but not limited to, its secured credit facilities, its 9.75% senior notes due 2021 (the "2021 Notes"), its 11% senior subordinated notes due 2018 (the "2018 Notes" and together with the 2021 Notes, the "Existing Notes") and its floating rate notes due 2017, and (ii) pay related fees and expenses.

New Senior Secured Credit Facilities

The Authority also announced today that it has entered into a Credit Agreement by and among the Authority, the Tribe, Citizens Bank, N.A., as Administrative Agent, and certain lenders, providing for $1,400 million in new senior secured credit facilities, comprised of a $170 million senior secured revolving credit facility, a $445 million senior secured term loan A facility, and a $785 million senior secured term loan B facility.

The Authority applied the net proceeds from the new senior secured credit facilities, together with net proceeds from the New Notes, to finance the repayment, repurchase and redemption of the indebtedness described above and to pay related fees and expenses.

Tender Offer; Redemption and Satisfaction and Discharge of Existing Notes The Authority also announced today that, using net proceeds from the New Notes and borrowings under the Authority's new senior secured credit facilities, the Authority (i) settled its previously announced tender offers for the 2021 Notes and 2018 Notes (the "Tender Offers") with respect to all notes tendered into such offers prior to 5:00 p.m. (all of which were tendered at or prior to the early tender deadline of 5:00 p.m. New York City September 30, 2016 and (ii) satisfied and discharged its obligations under the respective indentures governing the Existing Notes, including by depositing with U.S. Bank National Association, as trustee for each of the 2018 Notes and the 2021 Notes (the "Existing Notes Trustee"), funds sufficient to redeem the Existing Notes not tendered in the Tender Offers and calling such untendered Existing Notes for redemption, in accordance with the satisfaction and discharge provisions of such indentures.  The Authority directed the Existing Notes Trustee to apply the deposited funds to effect the redemption of each series of Existing Notes on November 14, 2016

Prepayment of Floating Rate Notes due 2017 and Prepayment and Termination of Existing Secured Credit Facilities

The Authority also announced today that it has prepaid its floating rate notes due 2017 issued pursuant to a note purchase agreement dated November 20, 2015(y) prepaid all amounts outstanding under, and terminated, its secured credit facilities previously outstanding pursuant to a loan agreement dated November 19, 2013

This press release is for informational purposes only and does not constitute a notice of redemption under the redemption provisions of the Existing Notes Indentures, nor does it constitute an offer to sell, or a solicitation of an offer to buy, any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 595-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut.

The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe's gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the 1,200-room luxury Sky Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000 square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge.

Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can sometimes be identified by the use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect" or "intend" and similar expressions. Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority.

Information concerning potential factors that could affect the Authority's financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2015, as well as in the Authority's other reports and filings with the Securities and Exchange Commission.

Any forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

Robert J. Soper

Chief Executive Officer

Mohegan Tribal Gaming Authority

Mario C. Kontomerkos

SOURCE Mohegan Tribal Gaming Authority

Related Links

http://www.mtga.com

http://www.prnewswire.com/news-releases/mohegan-tribal-gaming-authority-announces-closing-of-refinancing-transactions-300345261.html

STEVEN STRADBROOKE

CAESARS OFFERS CREDITORS ANOTHER $1.6B, WOULD SPELL END OF HEDGE FUND OWNERSHIP

SEPTEMBER 21, 2016

Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday.

On Wednesday, Caesars added an extra $1.6b to the $4b it had already offered junior bondholders of Caesars Entertainment Operating Co. (CEOC), the main unit of Caesars that filed for bankruptcy protection in January 2015, citing $18.4b in debt.

The total amount that the parent company is offering junior creditors now exceeds the $5.1b that an independent examiner determined the parent was liable for if these creditors were to prevail in their lawsuits in Delaware and New York.

Most of the additional $1.6b is coming from Caesars’ hedge fund owners, Apollo Global Management and TPG Capital, who have agreed to give up their equity in Caesars in exchange for releasing them from liability related to those creditor lawsuits.

The lawsuits were filed after creditors accused Caesars and the hedge funds of illegally shifting profitable assets out of CEOC and into other Caesars units prior to the bankruptcy filing. Creditors have also accused the parent company of reneging on guarantees to honor CEOC’s debts.

The extra $1.6b includes $100m from Caesars directors and officers, via their insurance companies. Last week, US Bankruptcy Judge William Goldgar approved a creditor request to have a peek at the personal finances of some of these directors and hedge fund owners in order to determine how much they could contribute to CEOC’s restructuring.

An additional $400k would come from “small” reductions in recoveries by senior creditors, most of whom have already approved CEOC’s restructuring. These senior creditors have to sign off on these reductions for the plan to go ahead.

On Wednesday, CEOC attorney David Seligman told the Illinois bankruptcy court that this “best and final” offer was only valid until Friday. The creditors have argued in court that they are owed $12.6b, and it remains to be seen whether they’ll take Caesars bait or roll the dice and see how the lawsuits turn out.

Should the creditors take the money on the table, it will bring an end to the hedge funds’ disastrous involvement in the Caesars debacle. The funds loaded up on $28b worth of debt to purchase the then-named Harrah’s in 2007, only to have the financial rug pulled from under their feet when the global economy tanked the following year, a setback from which the company never recovered.

http://calvinayre.com/2016/09/21/casino/caesars-final-offer-creditors/

Mohegan Tribal Gaming Authority Announces Intention To Refinance Bank Credit Facilities

UNCASVILLE, Conn., Sept. 19, 2016/PRNewswire/The Mohegan Tribal Gaming Authority, or the Authority, the owner of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun Pocono in Wilkes-Barre, Pennsylvania, announced today that it has engaged Citizens Bank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey, Inc., Goldman Sachs Bank (USA), KeyBank National Association and CIT Bank, N.A. to arrange $1,400 millionin new senior secured credit facilities, comprised of a senior secured revolving credit facility, a senior secured term loan A facility, and a senior secured term loan B facility (collectively, the "new senior secured credit facilities").  The closing of the new senior secured credit facilities is subject to obtaining lender commitments, as well as market and other conditions.  The Authority intends to use the net proceeds of the new senior secured credit facilities to repay and terminate or otherwise retire certain of its existing indebtedness, including its existing senior secured credit facilities for which Citizens Bank, N.A. serves as administrative agent.

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 595-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe's gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the 1,200-room luxury Sky Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000 square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com,www.mohegansunpocono.com or www.mtga.com.

Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These statements can sometimes be identified by the use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect" or "intend" and similar expressions.  Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority.  Information concerning potential factors that could affect the Authority's financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2015, as well as in the Authority's other reports and filings with the Securities and Exchange Commission.  Any forward-looking statements included in this press release are made only as of the date of this release.  The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

Contacts:
Robert J. Soper
Chief Executive Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

Mario C. Kontomerkos
Chief Financial Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

SOURCE Mohegan Tribal Gaming Authority

Related Links

http://www.mtga.com

http://www.prnewswire.com/news-releases/mohegan-tribal-gaming-authority-announces-intention-to-refinance-bank-credit-facilities-300330045.html

Debt restructuring sought by River Rock Casino World Casino Directory Almost immediately upon the rival casino's opening, River Rock's revenues were just about cut in half, according to tribal officials who blamed the ...

River Rock Casino seeks to restructure debt

CLARK MASON

THE PRESS DEMOCRAT | August 5, 2016

River Rock Casino, which took a financial blow after the bigger, glitzier Graton Resort and Casino opened nearly three years ago, is offering to restructure its overdue debt, but in a deal that would pay bondholders a fraction of what they are owed.

The offer comes more than two years after the Geyserville-area casino operated by the Dry Creek Rancheria Band of Pomo Indians defaulted on interest payments on $165 million owed to bond holders.

In a proposal announced Thursday, River Rock Entertainment Authority, the operator of Sonoma County’s oldest tribal casino, said it would offer cash payments amounting to 30 percent of the principal amount of outstanding senior notes that are due in 2018.

River Rock intends to borrow up to $50 million from Benefit Street Partners, a New York City-based investment firm, to finance the restructuring and settlement deal.

A gaming analyst on Friday indicated bondholders may have few options other than to accept the offer.

“There’s only so much creditors can extract from a casino under stress,” said Alex Bumazhny, a Fitch Ratings senior director. “Thirty cents on the dollar is still quite a bit of debt.”

He said tribes are quasi-sovereign entities that can’t be put through bankruptcy, and courts are also a risky arena for creditors of tribal casinos.

River Rock was the first tribal casino in Sonoma County when it opened in 2002. It enjoyed a monopoly until Graton became the second in the county with the opening of its large gambling hall next to Rohnert Park in late 2013. Revenues plummeted almost immediately at River Rock by about 50 percent, according to tribal officials, who blamed it on the new competition from Graton.

A year ago, David Fendrick, River Rock Casino’s general manager, said that drop stayed pretty consistent and revenues were still down in the mid 40 percent range, compared to before Graton opened.

On Friday, Fendrick said business at River Rock has leveled off. “We’ve experienced no further erosion of business since the initial drop from Graton. Business is holding steady,” he said in an email.

River Rock reported $124 million in revenues in 2010, the last full year it publicly disclosed such financial information.

Last year, the Dry Creek Pomos also renegotiated the amount they had agreed to pay Sonoma County for off-reservation impacts from the casino for things like sheriff’s coverage and road maintenance.

The tribe reduced by $33 million the amount it was obliged to pay the county under a new payment schedule that was extended from 2020 to 2030. In return, the tribe is precluded until early 2025 from trying to build a casino on land it owns south of Petaluma.

River Rock has been forced to make a series of cost cutbacks as a result of its precipitous drop in revenues. Last year it employed 388 people, down from a high of 600.

The number of slot machines and table games were also reduced from a previous high of 1,300 slots and 22 table games. Last year, it had 1,150 slots and 18 table games.

Fendrick declined comment on the planned restructuring and resettlement proposal, which was described in a news release.

Dry Creek Tribal Chairman Chris Wright, who typically does not speak to the media, did not respond to a request for comment.

In addition to the 30 cents on the dollar that River Rock intends to pay bondholders, the press release also mentioned cash held in a “Parity Lien Debt Account” that will be paid to bondholders. It did not state the amount.

Institutional holders of River Rock’s senior notes are represented by an “Ad Hoc Holder Group,” which must approve the restructuring of the debt.

River Rock intends to hold a conference call with the group to discuss the offer. Also participating will be Stuyvesant Square Advisors, acting as financial advisor to River Rock, the Senior Notes trustee, and attorneys for all the parties.

To obtain financing for the settlement, River Rock will need to show it’s supported by majority of the holders of the principal amount of the senior notes.

Most of the half-dozen or so other tribal casinos across the country that defaulted on their obligations convinced creditors to accept new bonds with a lower face value, or other modifications, Fitch Ratings analyst Bumazhny said Friday.

“Usually it’s new debt to an existing creditor rather than cash,” he said of the typical restructuring, adding that River Rock’s cash offer could be attractive.

“Usually it’s safer to take cash than a new piece of debt,” he said.

http://www.pressdemocrat.com/news/5934053-181/river-rock-casino-seeks-to

STEVEN STRADBROOKE

BANKRUPTCY JUDGE GIVES CAESARS CREDITORS THE OKAY TO VOTE ON RESTRUCTURING

JUNE 23, 2016

Casino operator Caesars Entertainment has received court approval to allow creditors to vote on the proposed restructuring plan of the operator’s bankrupt main unit.

On Wednesday, US Bankruptcy Judge Benjamin Goldgar set a Jan. 17, 2017 confirmation hearing for the planned restructuring of Caesars Entertainment Operating Co (CEOC), which filed for Chapter 11 bankruptcy protection last year.

In issuing his ruling, Goldgar said there was “something poetic” about that January date, which comes two years and two days after CEOC filed its Chapter 11 paperwork, citing $18.4b in debts.

Goldgar’s frustration with the length of this process was on full display on Wednesday, as he insisted the parties were “going to finish this now.” However, he also said he expects Caesars’ path to creditor harmony would be neither short nor simple.

While the confirmation hearing is still seven months away, lawsuits filed by CEOC’s creditors in Delaware and New York could get underway by Aug. 29. Goldgar granted a temporary stay of the suits last week in a bid to allow Caesars more time in which to convince creditors to sign on to CEOC’s restructuring.

On Wednesday, CEOC lawyers claimed they’d made “significant progress” in getting senior creditors to approve the restructuring, and a lawyer representing a group of senior bondholders said his clients were close to signing on the dotted line.

The junior creditors who filed those Delaware and New York lawsuits are proving a tougher sell, as they’re the ones who’ve been asked to bear the brunt of the $10b that CEOC’s proposed restructuring would make disappear. They claim to be owed as much as $12.6b and think the extra $4b that the Caesars parent company has offered to contribute is an insult.

The junior creditors have accused Caesars of stripping CEOC of its more profitable assets and shifting them to other Caesars’ divisions in order to shield them from creditors’ clutches. The creditors have also accused Caesars’ hedge fund owners of unlawfully absolving the parent company of responsibility to honor the debts of its main unit. The parent company has said it will have to join CEOC in bankruptcy court if it’s required to honor those debt obligations.

http://calvinayre.com/2016/06/23/casino/bankruptcy-judge-okays-caesars-creditors-vote-restructuring/

Suffolk Downs, Caesars, f/n/a Harrah's, Gary Loveman

Caesars sought home at Suffolk Downs... 

STEVEN STRADBROOKE

CAESARS ENTERTAINMENT WINS TEMPORARY REPRIEVE OF CREDITOR LAWSUITS

JUNE 15, 2016

Beleaguered casino operator Caesars Entertainment has won a temporary reprieve from having to face creditor lawsuits.

On Wednesday, US Bankruptcy Court Judge Benjamin Goldgar told Caesars he had suspended bondholder lawsuits in Delaware and New York until Aug. 29. The period is shorter than Caesars had requested and Goldgar said the likelihood of him renewing the freeze after that date “will be slim.”

Caesars is attempting to restructure its main unit Caesars Entertainment Operating Co (CEOC), which filed for bankruptcy in January 2015, citing over $18b in debt.

Junior creditors, who have been asked to bear most of the fiscal pain of this restructuring, have filed lawsuits accusing CEOC’s parent company Caesars Entertainment Corporation (CEC) of illegally shifting profitable assets out of CEOC into other CEC divisions prior to the bankruptcy filing.

The creditors have also accused CEC’s hedge fund owners Apollo Global Management and TPG Capital of conspiring to ensure that the parent company was absolved of the obligation to honor its subsidiary’s massive debts.

The Delaware trial, which involves $3.7b in CEOC’s debt, was scheduled to commence on Thursday. The New York trial, which involves over $7b, had a hearing scheduled for next week. Caesars has argued that if these courts find CEC liable for CEOC’s debts, CEC will have to join CEOC in bankruptcy court.

CEC recently attempted to improve upon its original paltry offer that would have paid junior creditors pennies on the dollar. CEC’s hand was forced by the findings of an independent examiner, who determined that the asset transfers left CEC vulnerable to up to $5.1b in additional claims.

While Caesars execs expressed relief at Wednesday’s ruling, Goldgar warned them not to squander this opportunity. “There better be some conversations. You’ve got that time. Use it.”

The parties will be back in Goldgar’s Illinois court on June 22 for a hearing on CEOC’s request to allow creditors to vote on the company’s latest restructuring plan.

http://calvinayre.com/2016/06/15/casino/caesars-entertainment-temporary-reprieve-creditor-lawsuits/

CASINO NEWS

STEVEN STRADBROOKE

REPORT: MACAU CASINO JUNKETS SITTING ON $8B IN BAD DEBTS

APRIL 30, 2016

Macau gaming regulators are conducting audits of licensed casino junket operators to determine the value of bad debts on their books.

In a report this week, public broadcaster TDM quoted Gaming Inspection and Coordination Bureau (DICJ) chief Paulo Martins Chan saying his office had tasked auditors with going over the accounts of licensed junkets to get a sense of the scale of their unrecoverable loans to high-rolling gamblers.

Late last year, the DICJ imposed new rules requiring junkets to submit monthly financial data in a bid to impose stricter accountability of the industry. The move was prompted by a wave of scandals, including internal thefts that left junket investors high and dry and led to the closure of many junket-controlled VIP rooms.

Chan told TDM that the DICJ was in uncharted territory as “we have never had this kind of information before.” Chan said he hopes to get a sense of just how bad the bad debt situation is by the end of 2016.

In December, the head of Macau’s Association of Gaming & Entertainment Promoters estimated that junkets were collecting only between 20% and 30% of their gambling loans. Many junkets were said to have been reduced to selling bad VIP debt at steep discounts to speculators.

Last week, a Daiwa Securities report claimed that junkets were “struggling just to break even” due to fewer mainland VIPs making the trip to Macau and rising bad debts, which the brokerage estimated amounted to at least HKD 30b (US $3.9b). The brokerage clarified that this total was a “very conservative estimate” and the real outstanding sum could be closer to HKD 60b.

Daiwa also suggested that Macau casino operators could end up sharing some of the junkets’ pain. Melco Crown Entertainment and Wynn Macau were fingered as “the most exposed of the operators to: 1) the riskier portion of the junket business, and 2) to premium-direct business.”

http://calvinayre.com/2016/04/30/casino/macau-casino-junkets-stuck-with-8b-bad-debt/

CZR: Caesars Entertainment bankruptcy trial pushed back

Remember when Caesars was salivating to invade Massachusetts? 

It wasn't necessary to be a financial analyst to recognize this belly-flop!

Suffolk Downs said "YES!" 

East Boston said "NO!"  Smart move!  

Consider subscribing to the site below to receive gambling industry reports: 

CZR:  Caesars Entertainment bankruptcy trial pushed back
12:59 pm, Tue, Jun. 23, 2015

Read now »

MGM: Mischief Or Magic In The Ordered Sale Of Kirk's Stake In MGM Resorts International?

Mischief Or Magic In The Ordered Sale Of Kirk's Stake In MGM Resorts International? by Howard Jay Klein 
This article was published on Mon, Jun. 22, 1:33 PM ET

Read the full article now »

Kansas: Consultant findings prompt reaction

Consultant findings prompt reaction

• 
  
• By Andrew Nash
  The Morning Sun

  
  Posted Jun. 12, 2015 at 9:15 AM 
  
  Pittsburg, Kan.

  On Wednesday, the Kansas Lottery Gaming Facilities Review Board heard the findings of a nearly half-million dollar analysis by its consultants.

  Now, the three casino bids for the Southeast Gaming Zone and those that heard the consultants are reacting to the numbers and figures put out by Union Gaming Analytics and Cummings Associates.

  Perhaps the most surprising finding of the consultants was the difference between the casinos’ revenue projections and the projections of Union Gaming and Cummings Associates.

  While all three casino bids were considered too high by those analytics, the projections by Camptown Casino and Kansas Crossing were both within 10-20 percent.

  The same could not be said for Castle Rock Casino, which expected $83 million in revenue. Union Gaming projects revenues of $47.8 million, and Cummings projected $59.9 million.

  Castle Rock officials called the consultants’ reports “flawed” and said they would issue a written rebuttal by Monday, the statutory deadline for a rebuttal. Castle Rock says their projections are based on “multiple market demand and feasibility studies conducted by leaders in the industry.” They also claim to have “in-depth evaluations by financial institutions that have led to committed financing from three national banks that specialize in the gaming industry.”

  “Our team doesn’t feel like that question was adequately answered,” said Rodney Steven II, Castle Rock partner. “We actually were wondering the same thing. Now that we have the consultants’ reports – provided at the close of the daylong meeting – we can see that Union Gaming used an across-the-board formula that led to some faulty assumptions. Included in that is a big misconception that with the 27 percent cut the State of Kansas takes, Castle Rock cannot be competitive, particularly against Downstream Casino. However, Downstream must pay a high interest rate on its nearly $400 million in debt as well as paying defined stipends to each tribal member. This creates an effective tax rate that very likely exceeds the Kansas gaming tax rate. We’re not afraid of the tribal casinos to our south. In fact, we see them as an advantage, because they’ve generated a strong gaming market.”

  On the other hand, the Crawford County Convention and Visitors Bureau feels the consultants’ reports are vindication for their study completed by Jay Sarno Associates. That study predicted Castle Rock would generate about $48.9 million in revenues, and Castle Rock also came out against the methodology and objectivity of that study.

  “We weren’t surprised by the findings from the consultants because we were confident in the numbers provided by the study that we had conducted. We are hopeful that the commission will listen to those numbers and it will help them make the right decision,” said B.J. Harris, Crawford County Convention and Visitors Bureau executive director. “I think that’s why they’ll ultimately choose to put a casino in Crawford County.”

• Harris said that despite the idea that the two Crawford County casino bids — by nature of being smaller — would be more of a “regional” casino rather than a “destination” casino, both of the Crawford County bids are more attuned to the Southeast Kansas region.

  As evidence of that, he cited a recent agreement between the Kansas Crossing bid and the Southeast Kansas Tourism Region to provide $10,000 a year for 10 years in funding to promote regional tourism.

  “I’m not sure I see [the Crawford County bids] as not destination. I think they all will be a destination from a visitor standpoint. The two in Crawford County are more devoted to Southeast Kansas, looking at their proposals through the eyes of operating in Southeast Kansas and providing benefits to Southeast Kansas. If you look at what they’re offering the community and business development and giving back, they’re interested in the benefit of Southeast Kansas in general,” Harris said.

  The LGFRB will hear one last 30-minute pitch by the three applicants on June 23, after which the board will conduct a ballot vote to pick a winner.

http://www.morningsun.net/article/20150612/NEWS/150619939