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Inside Gaming Column28 July 2003Every cloud has a silver lining. The fiscal crises plaguing states nationwide is leading to the spread of gaming as a revenue source and added competition for Las Vegas. The same crises, however, are leading cutbacks on subsidies for publicly owned centers. The results are higher rates for space and closures likely in some markets. With less competition for Las Vegas convention centers and meeting space operators, fiscal crises elsewhere should be a boon for Vegas. ¥ ¥ ¥ Curtain up. Bear, Stearns & Co., the Wall Street investment banking, securities trading and brokerage firm, is about to go public again with coverage of gaming industry operators. The No. 6 U.S. securities firm went black in February after top-ranked casino and hotels analyst Jason Ader left. The company should again be offering guidance by the time the Global Gaming Expo convenes here Sept. 16. ¥ ¥ ¥ MGM Mirage's lack of interest in jumping on the dividend bandwagon is turning heads. Insiders, however, say it makes sense. Investors tell us MGM Mirage's disposition to repurchasing shares instead of paying dividends is a sign the company is interested in keeping its powder dry for acquisitions. They also say acquisitions could be seen by management as catalysts for the stock which has been challenged in terms of earnings per share growth. ¥ ¥ ¥ In the name of profits, a T-bone steak may soon cost $100 in Chicago's casinos. Insiders say plans are in the works to cover the historic incremental gaming tax increase to 70 percent by pricing amenities to cover the costs. That would help cushion casino profits, but could change the face of gaming in Illinois and other states extorting gaming companies. And as crowds thin, higher prices could spell lower tax revenues, job cuts and reduced profits. ¥ ¥ ¥ Beware, humor ahead. Some readers chastised us last week for neither understanding nor making it clear that Blackjack Forum magazine's coverage of advantage gambling was satirical. But who could have missed it? Besides our farcical allusion last week, the article also claimed to quote Park Place CEO Wally Barr saying Caesars Palace planned to build an exact replica of Mount Calvary and "stage crucifixions of winning players, every hour" and MGM Mirage controlling shareholder Kirk Kerkorian saying The Mirage could throw winning players into the volcano and "mike their screams as they fry." The Inside Gaming column is compiled by Gaming Wire Editor Rod Smith. You can contact him by phone at (702) 477-3893, fax (702) 387-5243 or e-mail at rsmith@reviewjournal.com. Copyright GamingWire. All rights reserved. |