Nevada gaming revenues decline 6 percent in June; Strip down 4.5 percent

Nevada gaming revenues decline 6 percent in June; Strip down 4.5 percent

10 August 2012

By Howard Stutz

LAS VEGAS -- For one month, Northern Nevada has bragging rights.

Casinos in Washoe County and Reno combined for large single-month gaming revenue increases during June as Clark County and Strip figures fell.

Results in the north weren't enough to push the month into the positive column. Gaming revenues statewide fell 6 percent during June, the state's second straight monthly decline and third time in four months the numbers were down.

According to figures released Thursday by the Gaming Control Board, Nevada casinos collected $832.5 million from gamblers in June, compared with $885.8 million collected in June 2011.

Washoe County's casinos had a 7 percent increase in gaming revenues, which were helped by several special events and a hold percentage that favored the house. Reno casinos recorded a 9.4 percent increase.


But Washoe's $66.8 million gaming revenue total was just 8 percent of the state's overall number.

Casinos in Clark County, which accounted for 85 percent of the state's gaming revenues in June, dragged down the state total. Gaming revenues in Clark County declined 7.9 percent to $707.3 million, including a 4.5 percent drop on the Strip and double-digit declines in four reporting areas. The Strip's poor month - $483.7 million in June, compared with $506.7 million in the same month a year ago - wasn't a surprise after depressed second-quarter earnings by Strip operators.

Baccarat revenues on the Strip fell almost 4 percent, to $103 million. The amount wagered rose 21.1 percent to $829.4 million, while the hold percentage was 12.1 percent. In June 2011, baccarat revenues rose 478 percent while casinos held 15.6 percent of the amount wagered.

The Strip results also reflect two vastly different events in June.

The Pacquiao-Bradley championship fight weekend at the MGM Grand helped fuel baccarat play.

The 300,000 visitors attracted over three days of the Electronic Daisy Carnival, however, likely drove down gaming revenues because that event's prime demographic wasn't a typical casino customer.

"The strong baccarat play levels indicate that Asian high-rollers are still coming to the Strip, particularly when Manny Pacquiao is in town," Union Gaming Group managing director Bill Lerner told investors. "The mass market tables games play also showed growth in gaming play levels with divergent trends among craps, blackjack, and roulette."

In the second quarter of 2011, Strip gaming revenues rose 16.1 over the same three months of 2010. The 2012 second quarter Strip gaming revenues declined 6.4 percent from 2011.

"We knew going in this was going to be a very tough comparison," said Control Board senior research analyst Michael Lawton.

Through June, gaming revenues are down 0.1 percent statewide and 0.6 percent on the Strip.

One positive sign in June: The amount wagered by gamblers statewide during the month was $11.2 billion, a 3 percent increase over the same month last year.

"We were encouraged by the increase in Strip betting volumes, particularly when taking into account that it occurred during a traditionally seasonally soft summer month," Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski told investors. "Looking ahead, we believe the gradual return of North American rated play, coupled with continued strength in high-end international baccarat sourcing, should help accelerate the Strip operator recovery."

Double-digit declines were recorded in North Las Vegas (down 26 percent), the Boulder Strip (down 22.8 percent), Laughlin (down 20.3 percent) and downtown (down 12.7 percent).

In other markets of Northern Nevada, revenues increased significantly. North Lake Tahoe's gaming market increased 29.3 percent in June, the highest increase anywhere in the state, but gaming revenues exceeded just $2.4 million. South Lake Tahoe casinos experienced a 17.2 percent revenue increase.

Gaming tax collections in July, based on gaming revenues generated in June, fell almost 27.5 percent, to $38.3 million.


http://www.casinocitytimes.com/article/nevada-gaming-revenues-decline-6-percent-in-june;-strip-down-4-5-percent-61238

How much is ENOUGH?

Anti-casino groups and activists have been rallying against the creation of casinos in Florida. "Casinos are magnets for the wrong type of people," said billionaire car mogul Norman Braman, who opposes the casinos.

Florida's Chamber of Commerce recently released a TV ad against the expansion of gambling across the state. The ad presented statistics that showed an increase in crime, lost jobs, bankruptcies and foreclosures in places like Atlantic City and Las Vegas, two cities known for their casinos.


From:
Read more: http://www.wsvn.com/news/articles/local/21006592303844/casino-debate-continues-in-light-of-150m-expansion/#ixzz1lR4nNT4m


Florida lawmakers end casino push
By Howard Stutz
LAS VEGAS REVIEW-JOURNAL

MIAMI -- Lawmakers ended an effort to build three Las Vegas-style hotel-casinos in the southern part of state Friday, dashing the hopes of major Nevada gaming companies that saw Florida as a potentially lucrative casino market.

A Florida legislator withdrew the destination resort bill before a key House subcommittee in Tallahassee could hold a vote.

The House rules chairman immediately released a statement declaring the bill would not be heard by other committees or be taken directly to the full House. Florida's annual 60-day legislative session ends in early March.

Barry Johnson, president of the Greater Miami Chamber of Commerce, which supported the casino legislation, said after the nonvote Friday the issue "was in the ICU (intensive care unit)." He didn't believe the measure would be heard again brought up before the end of the Legislative session nor would it be heard during any special legislative session this summer.

"I think we're looking at next year," Johnson said.

Supporters could also try to take the issue to voters in the future as a constitutional amendment.

The legislation, which would authorize three new nontribal casinos in Florida, had been closely watched by gaming industry leaders in Las Vegas. Las Vegas Sands Corp., Wynn Resorts Ltd., Caesars Entertainment Corp. and MGM Resorts International were linked to potential interest in opening hotel-casino developments in South Florida.

Officials from Malaysia-based Genting Group were the most disappointed by the bill's demise. The company spent more than $400 million to assemble roughly 30 acres along the Biscayne Bay waterfront here, including spending $238 million to acquire the headquarters of the Miami Herald newspaper.

Genting planned to build the $3.8 billion Resorts World Miami, which company officials had boasted would become a dramatic feature along the waterfront of downtown Miami, with 5,200 rooms over four hotels, creating 30,000 permanent jobs, attracting almost 3 million visitors, and producing annual gaming revenues that would equal the Strip.

Jessica Hoppe, the senior vice president of government affairs and general counsel for Resorts World Miami, said Genting would not give up on the idea of Resorts World Miami. The company operates Resorts World New York at the Aqueduct Race Track in New York City and Resorts World Sentosa, one of two hotel-casinos in Singapore.

"We greatly appreciate the hard work of the destination resorts legislation bill sponsors, as well as all those who support efforts to bring common sense gaming reform and jobs to Florida," Hoppe said. "Resorts World Miami remains committed to the vision of world-class destination resorts in South Florida, and will continue to work with the state legislature and the South Florida community to bring this vision into a reality."

Nevada-based companies, such as Las Vegas Sands, expressed interest in developing a hotel-casino in Miami, but had not bought property for a development.

The company, which had hired Florida-based lobbyists and met with Miami civic and elected leaders, was opposed to the language in the current legislation that had been rewritten late Wednesday.

Andy Abboud, vice president of government relations for Las Vegas Sands, said the company opposed a change that replaced an independent gaming commission with a state Department of Gaming Control under the auspices of the governor and key lawmakers. The new department would issue licenses and control all aspects of gaming in Florida, a state that is not known for clean government.

Abboud said company leaders hoped the bill could be rewritten and improved.

"It's not dead and it could come back next year," Abboud said. "There is always going to be a demand for casinos in Florida. We're very supportive but the bill was moving in the wrong direction."

Expansion of casino gambling in Florida was a matter of fierce debate. The state has five racetrack casinos and eight Indian casinos. The Seminole Indian Tribe operates seven of the casinos, including the Seminole Hard Rock Hollywood and the Seminole Hard Rock Tampa. [How much is enough?]

Seminole Gaming CEO Jim Allen said tribal leaders opposed any casino expansion bill and hired lobbyists in Tallahassee to fight the measure.

Besides the Seminoles, opponents include some heavy hitters in Sunshine State politics, including the Florida Chamber of Commerce and the Walt Disney Co., which operates theme parks in Orlando. Racetrack operators, including Isle of Capri Casinos, which operates at track in Pompano Park north of Fort Lauderdale, opposed the legislation.

Union Gaming Group principal Bill Lerner said after the bill's demise was understandable given the interests that opposed gaming expansion. But he also thought the debate wasn't over. [Translation: We'll wear you down! Outspend you, but we'll NEVER give up!]

"Our sense is that we'll see revisions," Lerner said. "It's not over. This will be a long and windy road."


Proposed Vegas-style casinos in Florida face key vote
By Howard Stutz
LAS VEGAS REVIEW-JOURNAL

FORT LAUDERDALE, Fla. -- Reworked legislation that could bring three Las Vegas-style hotel-casinos to South Florida will face a crucial vote today in a state House panel that could kill the controversial issue.

And even if the bill wins approval from Florida's House Business and Consumer Affairs Subcommittee, the legislation faces an uphill battle.

The legislation, which would authorize three new nontribal casinos in Florida, is being closely watched by gaming industry leaders in Las Vegas. Las Vegas Sands Corp., Wynn Resorts Ltd., Caesars Entertainment Corp. and MGM Resorts International have been linked to potential interest in opening hotel-casino developments in South Florida.

Watching the legislation has been difficult -- it's a moving target. Legislative staff in Tallahassee late Wednesday gave the legislation a heavy rewrite, just days before it is to go up for a vote.

Among the proposed changes was replacing an independent gaming commission spelled out in the Senate version of the bill with a state Department of Gaming Control under the auspices of the governor and key lawmakers. The new department would issue licenses and control all aspects of gaming in Florida, a state that is not known for clean government.

"The last thing we want to see are elected officials who accept political contributions having a say on who gets a gaming license," said Andy Abboud, vice president of government relations for Las Vegas Sands, which has been exploring the prospects of a hotel-casino development in Miami. Like the other Las Vegas gaming powerhouses, the Sands has lobbyists working on lawmakers in Tallahassee.

Abboud said he hopes the final bill would make the gaming commission independent.

"We know this is a long process, but staff made some changes that we don't agree with," Abboud said.

Regardless of the details, the expansion of casino gambling in Florida is a matter of fierce debate.

Seminole Gaming Chief Executive Officer Jim Allen, whose company operates seven Indian gaming-owned casinos in Florida, including the Seminole Hard Rock Hollywood and the Seminole Hard Rock Tampa, said tribal leaders oppose any casino expansion bill. He said the legislation, which could lead to increased competition, "seems to change on a daily basis."

Allen, who was participating the grand opening of a $150 million expansion to the Seminole Casino Coconut Creek on Thursday, said the debate has caused the tribe to delay other projects in Florida, including a 1,500-room addition to the Coconut Creek property and hotel expansion at both Hard Rock properties.

Allen said the Coconut Creek expansion that opened with tremendous tribal fanfare Thursday has been in the works since 2006, long before the casino legislation came about. The project expanded and remodeled the casino, added a poker room, a 1,200-seat events center, three restaurants and a parking garage.

"Our compact with the state limits us to seven locations, but doesn't limit us on what us on the size of out locations," Allen said.

However, the tribe, which is lobbying against the casino bill, will wait until there is clarity on the issue before unveiling additional expansion plans.

"Number one, the changes in the legislation do not change the tribe's position," Allen said. "Keep in mind, there are three to four committees in both the House and Senate it has to go through before it gets to any potential merger on the floor. Just because there is a vote in one particular committee doesn't give any clear indication of it being positive or negative."

The bill up for a vote today still provides for three destination resorts with full casino games, and requires a minimum $2 billion per location investment from the casino companies. And amendments to the House bill now bring it in line with the Senate version, which sets a casino license fee of $125 million per site. The House version previously called for a $50 million fee.

In an effort to quell opposition from operators or racetracks, which also have slot machine parlors but no table games, the bill offers a reduced tax rate on racetrack slots that would kick in when the new full-service casinos open in 2015, at the earliest. Even with the tax break, racetrack operators, including Isle of Capri Casinos, which operates at track in Pompano Park north of Fort Lauderdale, oppose the legislation.

While some lawmakers thought the amendments would help push the bill through the subcommittee, but the issue still faces a long and difficult journey to Gov. Rick Scott's desk. In addition to the Seminoles, opponents include some heavy hitters in Sunshine State politics, including the Florida Chamber of Commerce and the Walt Disney Co., which operates theme parks in Orlando.