Most Clicked AGA SmartBrief a G2E production Stories
1. CFOs discuss how gaming can survive recession
AGA SmartBrief a G2E production | Nov 17, 2009
A panel of gaming financial executives discussed the recession's impact on casinos on the eve of the Global Gaming Expo in Las Vegas. Casinos have cut costs by eliminating staff and slashing room rates to draw in value-conscious customers. "In today's economy, the actions or inactions of chief financial officers can determine a company's survival," said Frank Fahrenkopf, president of the American Gaming Association. Las Vegas Sun (11/17)
2. Billionaire gambles on nearly bankrupt Foxwoods Casino
AGA SmartBrief a G2E production | Nov 17, 2009
Billionaire Leon Black has been buying up shares in the Foxwoods Casino and the MGM Grand at Foxwoods, owned by the Mashantucket Pequot Tribal Nation. The tribe announced Monday that it missed an interest payment for $2.3 billion in debt and will default on its loans on Dec. 16. If the Connecticut casinos go bankrupt, Black would not be able to assume physical possession because of a tribal law but could exert influence over the tribe's negotiations with creditors. New York Post (11/17)
3. Nebraska gambler files lawsuit against Harrah's
AGA SmartBrief a G2E production | Nov 20, 2009
Nebraska philanthropist Terrance K. Watanabe filed a civil lawsuit against Harrah's Entertainment, alleging the casino company plied him with prescription drugs and alcohol to encourage gambling. Harrah's previously had filed a criminal case against Watanabe for failing to pay $14.7 million in markers. Nevada gaming regulators are also investigating the allegations, but do not want to interfere with the criminal case. Las Vegas Sun (11/20)
4. Gaming industry may not have hit bottom yet, execs say
AGA SmartBrief a G2E production | Nov 18, 2009
Gaming industry officials see glimmers of recovery but say it's too soon to say the recession is over. "Without a doubt, the gaming industry is facing a long road to recovery," said Frank Fahrenkopf Jr., the president of the American Gaming Association. Gary Loveman, the chairman and chief executive officer of Harrah's Entertainment, also said it may be too early to tell whether Las Vegas casinos have hit bottom yet. Commercial casinos in the country took in a bit less than $8 billion in the third quarter, down 5.5% from a year ago. Wall Street Journal, The (11/17) Las Vegas Review-Journal (11/18) Google (11/17)
5. Deutsche Bank moves forward on ailing resort project
AGA SmartBrief a G2E production | Nov 16, 2009
The Cosmopolitan Resort & Casino in Las Vegas is an "impending disaster," according to casino magnate Stephen Wynn. The project, owned by Deutsche Bank AG and located next door to Wynn's Bellagio, is two years behind schedule and $2 billion over budget. Deutsche Bank took over the project last year after developer Ian Bruce Eichner defaulted on a loan. Nevertheless, the bank has decided to complete the project and has applied for Nevada gaming licenses. Bloomberg (11/16)
6. Penn National Gaming offers $102M for Fontainebleau
AGA SmartBrief a G2E production | Nov 18, 2009
Penn National Gaming offered 5 cents on the dollar for the unfinished Fontainebleau Las Vegas, but the resort's parent company is seeking other bids. Penn offered a $102 million bid for the project, which has spent $2 billion on construction. Penn's opening bid clears the way for the bankrupt property to be sold at auction on Jan. 21 if other bids are received. Miami Herald, The (11/18) Las Vegas Review-Journal (11/17)
7. Excitement is what matters once CityCenter opens
AGA SmartBrief a G2E production | Nov 16, 2009
The $8.5 billion CityCenter is scheduled to open next month and will become either a monument to folly or a bold gamble on the future of the Las Vegas Strip, writes Bill Ordine. MGM Mirage proceeded with construction on the resort complex, even as other companies delayed construction projects during the recession. The financial difficulties won't matter once CityCenter opens, says MGM Mirage spokesman Alan Feldman. "They want to know whether the place is fun, is it exciting, is it active. That the service is good, that the food is good, that the show was great -- that's going to be what matters," Feldman says. Philadelphia Inquirer, The (11/15)
8. Fraud on the rise in Las Vegas, says gaming panel
AGA SmartBrief a G2E production | Nov 17, 2009
At a panel at the Global Gaming Expo in Las Vegas, casino executives discussed the increase in fraud because of economic pressure from the recession. Employees at two casinos were caught in a cash room scam that allowed them to take money before it was counted and then report less counted. "This is the type of stuff that if you let a surveillance room get complacent, you let auditors get complacent, you have this type of thing rear its ugly head," said Jessie Beaudoin, senior director of surveillance at the Hard Rock Hotel. Las Vegas Review-Journal (11/17)
9. Chief marketing exec leaves Greektown Casino
AGA SmartBrief a G2E production | Nov 19, 2009
The chief marketing executive for Greektown Casino-Hotel withdrew her application for a Michigan gaming license and left her position. Amanda Totaro had introduced several marketing campaigns during her 10-month tenure at the Detroit casino in the midst of bankruptcy proceedings. The "Beat the Chicken" campaign allowed players to compete against live fowl in tic-tac-toe, and Totaro's marketing plan also beat competitors' coupons for regular players. Detroit News, The (11/19)
10. Foxwoods Resort Casino to default on loan
AGA SmartBrief a G2E production | Nov 18, 2009
The Mashantucket Pequot Tribal Nation, which owns the Foxwoods Resort Casino, paid $14.2 million on a $21.25 million interest payment. However, the tribe does not anticipate it will pay the balance within 30 days, which will lead to a default on the loan. "This is definitely a precedent-setting situation," said Megan Neuburger, director at Fitch Ratings. Google (11/17)
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