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Inside Gaming: Imperial Palace's Days May Be Numbered

It looks as if the Imperial Palace will be coming down. The question is, when and for what? Harrah's Entertainment Chairman Gary Loveman says he has planners working on a "conceptual development effort. ... We're going to put in place assets serving guests well into the next decade, so the problem is what range of entertainment offerings should be present in that location not just in 2005, but in 2012 and 2015." Loveman says Caesars Palace and the Rio are much the way he wants, but that other properties, including Imperial Palace, "are going to require very substantial modifications or complete tear-downs and rebuilds."

Wall Street analysts can't seem to stop pointing out records set by Wynn Las Vegas. In its first full quarter of operation, Wynn Las Vegas generated more cash flow than any Las Vegas casino in a first full quarter after an opening: $73.2 million, compared with $65 million at Bellagio and $18.3 at The Venetian in their first quarters. Even now, its cash flow was second only to $84.3 million from Bellagio, which after all, has 1,200 more rooms. Wynn Las Vegas also has only 5 percent of all table games, but 15 percent of table game revenue. Not too shabby for the newest show in town.

It seems success has gone to Sheldon Adelson's head. The owner of Las Vegas Sands Corp., holding company for The Venetian, has been telling Wall Street investors he feels "like the prettiest girl on campus -- all the boys are chasing me." Bottom line: He's done development deals for all but two lots out of seven on the Cotai Strip in Macau. He says operators are bombarding him with proposals, especially InterContinental Hotels and Hyatt. He'll be crestfallen if the Cotai hotels open later than early 2008.

Hollywood may end up teaching Las Vegas a few lessons. Actor-director George Clooney says 25 percent of the profits from Las Ramblas, the $3 billion condominium project he's doing with Rande Gerber, Centra Properties and the Related Cos. on Harmon Avenue, will go to the nonprofit Make Poverty History campaign. Otherwise, his casino will be a throwback to the Rat Pack days when he came to Las Vegas to hear his aunt Rosemary sing.

There may not be lines at the gasoline stations, but there are lines to buy new cars, at least at the Wynn Las Vegas Maserati and Ferrari dealer. Nothing can squelch the American dream to own a souped-up car. But a lot of people are asking why are there also lines to buy trinkets. If you don't own a Ferrari, do you really want to show off a doodad? And if you do own a one, how cool is it to flash a tacky red key chain? But, hey, that's Wynnworld, where everything sells.

Gaming Wire Editor Rod Smith can be reached by e-mail at rsmith@reviewjournal.com or telephone at 477-3893.

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