Kyl toots his own horn

Senator Jon Kyl of Arizona has proclaimed that a newer, stronger version of his anti-Internet gaming bill is destined to pass the Senate. This bill differs from an earlier bill that passed the House; while both ban the use of bank instruments for online wagering, the latest iteration specifically denies states the option of legalizing betting via the Internet. This, according to AGA president Frank Fahrenkopf, is the rub. From the LVRJ:

This can easily be fixed by including language which would say gambling must be legal in states where the (Internet) gambling transmission is coming from," Fahrenkopf said.

So far, no state has legalized Internet gambling. But online wagering has mushroomed from $445 million in bets six years ago to projected wagers of $4.2 billion this year on more than 1,800 offshore Web sites.

Fahrenkopf said states, not the federal government, should decide if they want to legalize Internet gambling.

States retain that option in an Internet gambling bill that the House passed 319-104 on June 10. Both the House bill and the Senate bill would prevent the use of credit cards, checks and electronic fund transfers for online wagering.

Fahrenkopf said the casino industry could support an earlier version of the Kyl bill, which mirrored the legislation passed by the House. But after the Department of Justice complained that the House bill would expand Internet gambling, the Senate Banking Committee changed Kyl's bill to prohibit states from legalizing online wagering.

Fahrenkopf said the Justice Department misread the House bill and overreacted.

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Does this remind anyone of the Bond movies where the villain prepares an elaborate execution trap for Bond, announces his plans for world domiantion, then leaves so Bond can escape? Maybe it's Batman (the TV show) I'm thinking of--every episode had that spot it it. Anyway, if this thing passing is so inevitable, why does he have to announce it. It sounds like he's desperate to get the support of the commercial casino industry and is trying to play them off the tribal industry.

Hopefully, facing tremendous difficulties in both foreign and domestic policy, the Senate will have more to do than pass bills banning online gaming. The current regime of tepid prohibition hasn't curbed online betting or helped anyone besides off-shore operators, and it's hard to imagine that a vigorous prohibition would do much better. All I'm saying is that there should be some study of the situation.
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THE most unimaginative name on the Strip

When you hang around the Strip long enough, you start to notice that once you get past all of the surface glitz and theming, many casinos have no real personality. Most casino architecture is kind of bland, with the usual thousand-room hotel towers dipped in fancy exterior paint jobs.
The new hotel tower at Mandalay Bay seems to be heading in the same direction. I had assumed that whatever name the marketing people fastened to it, employees would just refer to it as "the new tower," even when it's ten years old. Names of hotel components just aren't that descriptive. Most places call them "the north tower" or something like that; Excalibur really outdid itself by calling them I, II, III, and IV. Don't strain yourselves, OK? But the name of the new Mandalay Bay tower is by far the most vanilla and forgettable appelation for a structure I've seen in a while: "THE hotel at Mandalay Bay." So what, the existing 3000 rooms in the triform tower are part of a sock factory? Kind of like the Blue Man Group, I just don't get it. Here's the details from the LV Sun:

It will have a minimalist, contemporary look -- black, white and gray with some splashes of color -- that is largely absent from the city's kaleidoscopic megaresorts.

Though attached to the back end of the Mandalay Bay casino, it will also be marketed as a separate property from the resort, with its own advertising and marketing budget.

"This is not the fourth tower at Mandalay Bay," Chief Financial Officer Glenn Schaeffer said.

The hotel tower will feature two restaurants, a spa and a coffee bar and lounge in the lobby to entertain guests. A separate check-in and VIP area in the lobby means guests never have to venture into Mandalay Bay during their stay -- though that's unlikely, executives say.

"If that's all they do it's a profitable project for us," Schaeffer said.

The hotel will be marketed to convention-goers who desire larger, more upscale digs, he said.

"We realized there was a product offering we were lacking here that was an all-suite product," added Mandalay Resort Group marketing chief John Marz. "There's substantial demand for that on the convention side of the business."

The rooms will fetch more than $220 on average per night compared to the roughly $180 a night for a Mandalay Bay room, Schaeffer said.

That compares to rates of $250 to $260 per night at the Four Seasons Hotel, which typically commands the highest rates on the Strip. Like the hotel tower, the Four Seasons is an integrated hotel property attached to Mandalay Bay.

Rooms will contain a master bedroom and bathroom and a separate, "work-friendly" sitting area with a plasma screen television, workstation, wet bar and half bath.

"What we're finding is that the visitor to the Las Vegas Strip wants even more sophisticated luxury in the resort product," Schaeffer said. "The most expensive rooms (at Mandalay Resort Group properties) sell the first."
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The average room size in the all-suite tower is 750 square feet--bigger than my apartment, which has its own "work-friendly" sitting area with a chair, my laptop, a stereo, and a TV. No wetbar, but I do have a bottle of pinot grigio chilling in the fridge in case company comes, along with a few bottles of the hard stuff I've been given as gifts and never drank. So I think I've got all the amenities.

So maybe my new plan should be to market my place--which is located in a complex about 2 blocks from the Strip on Flamingo--as an exclusive all-suite property. I could easily get $220 a night. If I did this just one weekend a month, I'd be doing great.

Or not. But while I'm sure the all-suite tower will be all that, it's name is just an example of the agressive blandness that is so prevalent today in the industry.
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Class II machines good to go

Don't ask me for a technical definition of the difference between a class II and class III gaming machine. All I'll tell you is that a class III machine is a real (or a reel) slot machine or video slot and a class II machine is based on bingo or lottery. But the National Indian Gaming Commission approved the use of bingo slots on Indian reservations this week. From the LVRJ:

The federal ruling, in effect, allows American Indian tribes that don't have compacts with states to offer unlimited numbers of bingo slots.

Since the newly approved devices are very similar to traditional casino slot machines, the decision is likely to clear the way for the further growth of tribal gaming, said Merrill Lynch analyst David Anders.

"Because federally recognized tribes do not need compacts with state governments to operate Class II gaming devices, the ramifications of this decision are far-reaching," he said.

Class II gaming is limited to bingo and similar type slot games on tribal lands and does not require a state compact. Class III gaming includes many traditional forms of slot and gaming machines.

The ruling could be a boon for tribes in states where Class III gaming is not permitted, such as Alabama, Florida, Massachusetts, Oklahoma and Texas, since they will be able to introduce the new technologically advanced slot machines into their casinos without entering revenue sharing agreements with states. That will allow them to improve their win per day.

Tribes, such as those in California, where the number of Class III slots is limited, also may choose to install the bingo slots where play levels are high.
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Yes, I imagine permitting an unrestricted amount of gaming machines would fuel the growth of manufacturing. Obviously this will impact state-tribe compacts; if tribes know they can put in as many bingo slots as they want, they have no real need to negotiate compacts.
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That's all for today. Have a great weekend.
posted by Dave at 8:57 AM