Las Vegas Business News

A couple of current photos of the Palazzo project at the Venetian. The central tower core is almost topped out at 55 stories and the front facade is taking shape. The lower floors of the building have received the exterior finish.

Posted by flipchipro at 11:16 AM | Permalink | Comments (0)

Wandering around the south end of the Las Vegas strip checking out the Chinese New Year decorations I parked at the Bellagio Resort next to the Citycenter construction site. A rare event for me to be out when there is still some sunlight so I shot a couple of photos of the remarkable progress of the massive $8 billion project. Photos are current as of late Tuesday afternoon.

Want to see more Flipchip photos from the Chinese New Year decorated Bellagio Resort then click here for the Las Vegas Vegas News Blog, plus there’s more Flipchip Chinese New Year’s photos the Venetian so click here for the Poker Prof’s Blog.

Posted by flipchipro at 11:37 AM | Permalink | Comments (0)

The Culinary Union has already begun preparing for labor talks on contracts covering 50,000 maids, food-service workers and cocktail waitresses.

The look of the players in the negotiations has certainly changed since the last negotiations in 2002.

For the casinos there are only two major players; there were four in 2002. The former Park Place Entertainment changed its name to Caesars Entertainment, which was taken over by Harrah’s Entertainment, who now looks to go private with the equity firms, Texas Pacific Group and Apollo Management Group, while Mandalay Resort Group was purchased by MGM Mirage. Also, Tropicana and the Las Vegas Hilton have new owners.

On the union side the Culinary’s parent organization, the hotel and restaurant-focused HERE, joined with the textile and laundry-focused UNITE.

Culinary members are concerned over the possibility of losing pensions or free health insurance, followed by the increasing cost of living.

See Hotel workers gearing up for tough contract talks.

Posted by Zounds Off at 12:47 AM | Permalink | Comments (0)

According to documents filed with the Securities and Exchange Commission, the chief executive of Harrah’s Entertainment Inc., Gary Loveman, will receive about $94 million in stock options and other bonuses if the world’s largest casino buyout deal is completed.
Loveman would collect on stock options worth $80.3 million, stock appreciation rights worth $8.8 million, and restricted shares worth $4.9 million, and he can receive an additional $18.9 million, if he voluntarily quits a year after the buyout is completed.

For more see Golden Parachute article.

Posted by Zounds Off at 12:22 AM | Permalink | Comments (0)

HSBC Holdings Plc (NYSE: HBC) was downgraded to Underweight from Neutral at JP Morgan, as the firm believes the loan loss from the U.S. mortgage business may be 20% worse than expected. They recommend investors to short HBC shares and use any rally to add short positions.

Six months ago I was receiving four applications a week for various credit cards but all applications were to be returned to one address–HSBC. Some day I will understand why companies are in such a rush to increase personal debt in this country to the point that billions of dollars are defaulted. My solution–every application was shredded and dumped.

Posted by Zounds Off at 5:30 PM | Permalink | Comments (0)

The Casino Advisory Panel advising Britain’s Dept. for Culture, Media and Sports recommended Manchester as the location for a new mega-casino. Krezner International seemed to have the best chance at building, but now Las Vegas Sands has announced they will enter the competition. The Sands is already the largest casino operation, coming out of 2006 with mega profits from its China gaming and the Venetian in Las Vegas, and they are also committed to another huge project on Hengqin Island near Macau.

Other potential bidders for the rights just might include Harrah’s Entertainment, Inc. and MGM Mirage (NYSE:MGM).

For more see Rumors by Tom Barlow.

Posted by Zounds Off at 4:54 PM | Permalink | Comments (0)

Another top level executive takes his leave from Harrah’s Entertainment. COO Tim Wilcott departs today bringing to three the number of top level managers to take a hike. Flipchip has taken a look at the Las Vegas news for this first week of 2007 and posted on the Poker Prof’s Las Vegas & Poker Blog.

Posted by flipchipro at 12:35 PM | Permalink | Comments (0)

Tim Maland, most recently the President of the Reno Hilton is moving to the public sector as Nevada’s Director of Tourism. With a background in accounting and over 30 years experience in the Nevada gaming industry, Maland has worked at the executive level in both Reno and Las Vegas. Mr. Maland beat out Larry Friedman and Skip Sayre, the other finalists for the position and replaces outgoing director Bruce Bommarito. Bommarito is now the vice president of international planning for the TIA (Travel Industry Association) where he is “already being accused of showing favoritism towards Nevada Interests”. [IBLV & RGJ]

Tim Maland’s campaign contributions show support for Nevada politicians on both sides of the isle along with a sizable contribution to the Caesars’ PAC.

In short, I could hardly ask for a more qualified and successful individual for the position, and with Mr. Bommarito at the TIA, Nevada’s Tourism Industry has a bright future indeed.

Posted by pokerprof at 8:21 AM | Permalink | Comments (0)

Harrah’s Entertainment will be sold to Apollo Management Group, the New York-based buyout firm run by Leon Black, and Texas Pacific Group for an estimated deal of $90 per share according to rumors heard on the Las Vegas Strip. The Special Committee made up of Harrah’s board members has been in closed door meetings and apparently decided to accept the buyout valued at close to $17 billion. The two private investor groups’ will take the casino giant private thus allowing a greater degree of flexibility without the close scrutiny of a publicly traded company. Expect an official announcement from the company within the next few days.

A buyout by Apollo and Texas Pacific has the potential to deeply impact the Las Vegas casino industry and will almost certainly involve changes for the Harrah’s Entertainment owned World Series of Poker brand.

Posted by flipchipro at 9:58 PM | Permalink | Comments (0)

It was reported in the Boston Globe that Harrah’s Entertainment spent $17.8 million to change the state constitution according to filings with the state Board of Elections, in a measure defeated by 63 percent of voters.

Save Our State apparently spent approximately $4 million to defeat the proposal, helped by nearly $1.1 million given by gaming entity UTGR Inc. DBA Lincoln Park LLC which filed its report with the board on December 5, 2006.

It was reported that Harrah’s spent some of their money for pollsters; either the pollsters were incredibly inept or Harrah’s incredibly spendthrifty in a vote that wasn’t close enough to buy.

Posted by Zounds Off at 3:52 PM | Permalink | Comments (0)

Las Vegas Mayor Oscar Goodman, Nevada Governor Jim Gibbons, Nevada Assembly Speaker Barbara Buckley and Clark County Commission Chairman Rory Reid all took part in a 4.5 hour negotiation that ensures Nurses with the Service Employees International Union will return to work at Valley Health facilities which is part of Universal Health Services of Pennsylvania. [From the RJ]

MGM will be developing luxury non-gaming hotels and resorts in Abu Dhabi, Las Vegas and the United Kingdom. This is a partnership agreement with United Arab Emirates company Mubadala Development. [From the MGM]

Posted by pokerprof at 8:51 PM | Permalink | Comments (0)

From the LVCC:

Reporting to the President & CEO, the Vice President of Government Affairs develops and oversees the implementation of the Chamber’s government affairs programs. The Vice President promotes the Chamber’s policy positions and issues relevant to the business community at the local, state and federal levels. Coordinates the Government Affairs Committee-the volunteer committee charged with overseeing the Chamber’s political program. Establishes the government affairs budget including political action committee fundraising development. Engages in extensive internal (Chamber board, staff and membership) and external (elected officials/public/media) written and verbal communications. Supervises the Chamber’s on-site survey research facility used for both internal and external (revenue-generating) purposes. As a member of the President’s Executive Team, actively supports other Chamber executives and initiatives and participates in Chamber events and functions.

According to InBusiness this is a job that will require…

Someone practiced in the art of rhetorical gymnastics, whether it be explaining to thousands of small-business members why a gross receipts tax that exempted them was bad or explaining to them why a payroll tax that directly affects them is good…

Of course the Las Vegas Chamber is another of these “Visor’s Up*” organizations that seems to take credit for things they have nothing to do with (eg the marijuana initiative Question 7 Failing) and completely overlook the major issues where they proved completely toothless and ineffective (eg Question 5, the Smoking Ban Passing).

Sounds like LVCC needs more then just a new VP of Govt. Affairs to me.

*By “Visor’s Up” I refer to any entity that is completely biased towards itself to the extent it no longer is in touch with the reality. Think of a lawn with only a tiny patch of green, now put on a hat and bend it until you only see the speck of green, this might fool some, other will say take off the damn hat and face reality!

Posted by pokerprof at 1:07 PM | Permalink | Comments (0)

Plaque notes that it might not actually look anything like this.

Posted by pokerprof at 8:06 PM | Permalink | Comments (0)

A group led by Penn National and hedge fund D.E. Shaw is considering making a cash and stock offer for Harrah’s Entertainment, first reported by CNBC on Tuesday.

Lehman Brothers and Wachovia Corp. are set to provide financing for the Penn-Shaw deal.

Penn National’s bid comes after a failed bid by private equity firms Apollo Management and Texas Pacific Group.

Read more in PokerPages.com

Posted by Zounds Off at 10:07 PM | Permalink | Comments (0)

A report in Business Week Online is saying Boyd Gaming may be in position to receive the next big buy-out offer. According to Lawrence Haverty of Gabelli Global Multimedia Trust, Boyd Gaming may be the target of Carl Icahn, owner of the Stratosphere and the two Arizona Charlie’s casinos. Haverty belives the major appeal Boyd Gaming has for Icahn is the real estate holdings in Las Vegas.

Icahn already owns a major piece of the Boulder Strip with Arizona Charlie’s so adding the Boyd acreage would make him the big dog of the Boulder Strip. The Boyd’s Echelon Place acreage on the Las Vegas Strip could finally provide Icahn the presence to be a major Vegas player. Of course this is all based on Lawrence Haverty’s thoughts about the short term future of Las Vegas. FYI, he’s the guy that forecast the coming offers for Harrah’s, Aztar, and Tribune months before they became public.

Posted by pokerprof at 10:12 AM | Permalink | Comments (0)

From BusinessWeek online:

Boyd Gaming (BYD ) may be the next target in the buyout wave sweeping Las Vegas. On Oct. 25, Harrah’s (HET ) Entertainment, featured in this column on May 29, got a $15 billion bid from Texas Pacific Group and Apollo Management. Earlier, casino owner Aztar (AZR ) was bought out after a four-way bidding war. “This time, it is Boyd, which owns and operates casinos in Nevada and four other states, that may be taken private,” says Lawrence Haverty of Gabelli Global Multimedia Trust (GGT ). He identified Harrah’s, Aztar, and media giant Tribune (TRB ) months before they became targets. Like them, Boyd owns valuable assets that are way underpriced, says Haverty, who puts its “private-market value” at 70 a share. The stock is now at 42.11, and Chairman William Boyd owns a 30% stake. Boyd’s big attraction is its real estate in Vegas, Haverty says. It also owns 50% of the Borgata Hotel Casino & Spa in Atlantic City with MGM Mirage (MGM ). Major operators such as Steve Wynn or deal-hungry private equity groups could go after Boyd, says Haverty. But he says the most “fascinating player” who may make a bid is Carl Icahn, who already owns the Stratosphere and “is still trying to get a major foothold in Vegas.” Icahn knows the value of land in Vegas, he adds. Lawrence Klatzkin of Jefferies (JEF ), who rates Boyd a “buy,” notes that it is down 35% since its peak in April, but its “long-term potential hasn’t changed.” One big project is the $4 billion Echelon Place casino at the north end of the Strip, scheduled to open in early 2010. Boyd declined comment on any speculation.

Posted by Zounds Off at 4:48 PM | Permalink | Comments (0)

First, it looks like the Unions are raising the ante in the Wynn dealer dispute which started when Wynn decided to include floor supervisors in the dealer tip distribution, costing dealers thousands a year in expected income. An investigation is under way by the National Labor Relations Board into a complaint filed by Cynthia Fields. Fields’ complaint included the strong accusation that “[Wynn Resorts] threatened employees with termination and reduction in pay because of their protected activities and support for the Teamsters Union Local 995.” Strong language, but nothing but words at the moment. [lvbusiness]

Also a picket is planned for today, Friday the 24th, between 2pm and 5pm by the International Union of Gaming Employees. [WynnDealers]

In other news, Question 5 Smoking Ban – Dec 8th is the compliance deadline for bar, tavern and saloon owners.

Now that the Smoking Ban is becoming law and tavern owners are being forced to choose between food and smoking, most seem to be crying foul and throwing out the food rather then the smokers. [lvbusiness]

Posted by pokerprof at 9:32 AM | Permalink | Comments (0)

From the Carribean News Net:

Hugo Cancio, President and CEO of Fuego Entertainment, Inc., a public media and entertainment company, has announced that he will establish an exploratory group called the US-Cuban Investment Committee to assist the reconstruction of his native country, Cuba, and in the process, to play a key-role in its transformation to a free economy.

“While American companies and investors are currently prohibited from investing directly in Cuba, we hope to be ready to act once those sanctions are lifted. Once the US embargo is lifted, the media and telecommunications sectors are industries that we would like to lead in the rebuilding of Cuba’s infrastructure,” stated Felix Danciu, President and Founder of Olive Capital, LLC, an investment banking boutique based in Las Vegas, Nevada, and member of the Board of Directors of Fuego Entertainment, Inc. “We want to make sure we are not only a think-tank, but that we are able to one day pursue potential investment opportunities in Cuba.”

Posted by Zounds Off at 3:24 PM | Permalink | Comments (0)

Casino and hotel operator Columbia Sussex announced today it has won the final state approval it needs before closing its $2.8 billion takeover of Phoenix-based casino chain Aztar Corp.

The prime properties that Columbia Sussex gains are the Tropicana Casino & Resorts in Las Vegas and Atlantic City, N.J. The company plans to radically expand the Tropicana in Las Vegas from a 1,900-room hotel to 7,000 or more rooms.

Columbia Sussex currently owns four casinos in Nevada and also owns 80 hotels with more than 26,000 rooms.
Read more…

Posted by Zounds Off at 3:09 PM | Permalink | Comments (0)

The most ambitious megaresort project Las Vegas has ever seen. MGM’s City Center sits on 66 acres of prime Las Vegas Strip real estate. The complex will be almost 17 million square feet with over 7,000 hotel rooms and suites with every square foot designed by world renowned architects including HKS, Foster and KPF.

According to a recent InBusiness article the project will employ over 7,000 workers around the clock during it’s peak construction period.

Posted by pokerprof at 11:05 AM | Permalink | Comments (0)

Each year, hundreds of new products make their debut at Global Gaming Expo G2E and some 70 companies already have reported they will present more than 150 new products at G2E 2006.

Overall, G2E 2006 will feature over 750 companies with more than 320,000 square feet of exhibit space on the trade show floor. G2E 2006 will take place November 14-16 at the Las Vegas Convention Center.

Posted by Zounds Off at 6:45 PM | Permalink | Comments (0)

From Las Vegas Sun:

Casino operator Boyd Gaming Corp. said Thursday it posted a third-quarter loss due to competition in the market for Las Vegas residents and a charge on the sale of its South Coast Hotel and Casino.

The company also blamed a three-day shutdown of casinos in Atlantic City, N.J., in July and higher marketing costs when the casinos reopened.

Las Vegas-based Boyd lost $12.9 million, or 15 cents per share, compared with a profit of $32.9 million, or 36 cents per share, in the third quarter a year ago.

Ford post its biggest losses ever, the housing market is in a dive, and gaming companies start to lose money…? Read my Print–There is no strong economy!

But Harrah’s third-quarter profit rose 5 percent (see nwitimes.com), helped by strong performances at its Las Vegas properties. So I guess everything IS ok after all. Just a few problems in health care, education, social security, job creation, trade deficits, fences on the border….

Posted by Zounds Off at 6:58 AM | Permalink | Comments (0)

Default is a looming danger for the Las Vegas Monorail after low fares failed to draw enough riders and a fare hike chased off too many passengers, according to a bleak financial analysis released Tuesday.

The assessment by Fitch Ratings, a New York-based credit rating firm, also dropped the monorail’s bond rating further into “junk” status, possibly imperiling plans to extend the $650 million line to McCarran International Airport and around the Strip.

For more see The Las Vegas News.

Don’t get me started–more than the monorail can do.

Posted by Zounds Off at 3:29 AM | Permalink | Comments (0)