Featured Articles Archive - Page 396

Las Vegas gaming industry expected to have slow recovery

LAS VEGAS, Nevada -- Fitch Ratings Service tagged the American gaming industry with a stable outlook Wednesday but said it expects the economic recovery in Las Vegas to lag regional casino markets. In a report for the investment community, Fitch analysts said gaming revenue growth was resuming in many markets following a 2-year recession that reduced consumer spending at casinos throughout the country. In December, the ratings service gave the gaming industry a negative rating. Fitch senior analyst Michael Paladino said the new report "is very market specific." He said some casino jurisdictions are recovering quicker than others but the industry could turn negative again should the national economy take another dip. "Certain markets are getting better, but this is an industry that is capital intensive where there are also high leverage levels," Paladino said in an interview after the report was released...read more

Penn National begins M Resort promotion

LAS VEGAS, Nevada -- Regional casino operator Penn National Gaming told investors Thursday it has begun marketing the M Resort to its customer database while telling Wall Street the property's results should start showing up on the company's balance sheet in the last half of the year.During the company's fourth-quarter earnings report, Penn National Chairman and Chief Executive Officer Peter Carlino said negotiations are nearly complete with M Resort's equity holders regarding a purchase agreement for the 390-room hotel-casino."We began sending offers to stay at the M to some of our highest-value players and, while it is still early, the response has been encouraging," Carlino said.Penn National Chief Operating Officer Tim Wilmott said the company mailed more than 100,000 marketing and promotional pieces on the M Resort.Wyomissing, Pa.-based Penn National spent $230.5 million in October to acquire $860 million in debt covering M Resort, which included $160 million in subordinated debt formerly held by MGM Resorts International and $700 million in debt from Bank of Scotland.M Resort opened in March 2009 and was built and operated by Anthony Marnell III and his family."We believe we are close to completing negotiations with the property's equity holders regarding ownership and future operations and are simultaneously working with Nevada gaming regulators to secure necessary approvals for the transaction," Carlino said.Penn National said revenues and cash flow from M Resort could begin showing up on the company's balance sheet in the third quarter.M Resort is one of seven development projects Penn National Gaming has on the company's books.Penn National opened a casino in Maryland in September; has expansions under way at a riverboat casino in Illinois and a racetrack casino in West Virginia, that are expected to be completed this year; is building new casinos in Toledo, Ohio and Columbus, Ohio, that have planned openings in 2012; and is building a new casino in Kansas that will open in 2012.Penn National posted higher-than-expected revenue for the fourth quarter that ended Dec...read more

GPWA among winners at iGB awards

The Gambling Portal Webmasters Association (GPWA) won the inaugural Lou Fabiano Award for Best iGaming Community at Thursday's iGB Affiliate Awards. According to the judges, the GPWA won the award because they were "impressed by their strong reputation and provision of a well-moderated community where members actively contribute to important industry topics." The judges also liked "how GPWA have increased forum participation and introduced useful tools to help both programs and affiliates." They concluded that the GPWA was "an authority community for the iGaming industry, which is well-presented and extremely useful." The award, named after the late Lou Fabiano, was one of 14 awarded at the festive, humor-filled night at The Brewery in London. James Woods from Bet365 won the award for Best Affiliate Manager...read more

Macau casino revenue continues growth

MACAU -- Gaming revenues produced at Macau's more than three dozen casinos grew 33 percent in January, with the Chinese gambling market showing no signs of slowing down after a banner 2010. The results, $2.32 billion, or a 32.9 percent increase compared with January 2010, came in behind a 52 percent year-over-year increase in December...read more

Top-10 2011 Super Bowl prop bets

There's less than a week to go before the Pittsburgh Steelers take on the Green Bay Packers in the Super Bowl, and all the online sportsbooks are offering prop bets on the big game. Here's our top-10 list of Super Bowl prop bets, and where you can make them.10...read more

Slot makers hurt by Illinois ruling

SPRINGFIELD, Illinois -- The hopes of slot machine manufacturers in Nevada looking to Illinois as an opportunity for millions of dollars in sales have been dashed by a state appellate court. Gaming analysts said International Game Technology, Bally Technologies, WMS Industries and other slot makers might have to re-evaluate their quarterly and annual earnings guidance reports because of the potential market loss of some 35,000 video slot machines. An Illinois appellate court ruled this week that a $31 billion capital construction bill, approved in 2009, is unconstitutional because it violates the state's single-subject rule. The bill, which had several components, would have legalized slot machine-like video lottery terminals at the state's bars, taverns, restaurants, truck stops, fraternal organizations and veterans halls. The idea that locations in Chicago could have participated in the plan to add slot machines was potentially lucrative for the game providers. "For the equipment manufacturers this news is a negative," Janney Montgomery Scott gaming analyst Brian McGill told investors...read more

Iowa governor proposes gaming tax increase

DES MOINES, Iowa -- Iowa Gov. Terry Branstad has proposed a major tax hike on the state's casino industry as part of his budget package submitted to the Legislature last week. Under his proposal, the gaming revenues produced by Iowa's riverboat and racetrack casinos would be taxed at 36 percent. Currently, Iowa's casinos pay a gaming tax rate of 22 percent...read more

You can get lucky chasing losses, but the more you play, the less the chance

Casinos generate their earnings by nibbling off small percentages of the money players wager. Say, for instance, you're a roulette buff and always bet $5 on each of three rows – $15 total per spin. Edge, assuming a double-zero game, is 5.26 percent; the bosses therefore figure your action per spin is worth 5.26 percent of $15 – just under $0.79...read more

Deal Me In: But look at all the snow they got

Dear Mark: An AP article reported that blackjack players at the Tropicana in Atlantic City, November 2009, bought $15.1 million worth of chips and lost $2.1 million to the casino for a casino "hold" of 13.9 percent. In November 2010, players bought $20.2 million and lost $6.4 million for a casino "hold" of 31.8 percent...read more

American Gaming Association hires Boehner aide

WASHINGTON, D.C. The gaming industry's Washington D.C. lobbying group has hired a longtime aide to Speaker of the House John Boehner as the organization's vice president of government affairs. In a statement Friday, the American Gaming Association said Whitaker Lee Askew would work to expand gaming's support in Washington D.C. Askew spent five years with Boehner, a Republican from Ohio who became Speaker this month following his party's takeover as the majority in the House of Representatives. Askew served as the executive director of The Freedom Project, leading fundraising efforts, managing day-to-day political operations and serving as the key political contact for members of Congress, candidates, businesses, donors and community leaders. Prior to working with Boehner, Askew served as political action committee coordinator at the Property Casualty Insurers Association of America. American Gaming Association President Frank Fahrenkopf, Jr...read more