UNLV Special Collections makes the news

The donation of the Harrah's corporate archives is making the papers. From theLas Vegas SUN:

The donation marks the single largest gift of historic material from a gaming company nationwide and is also one of the largest ever received by the university -- which already has the most extensive collection of casino promotional materials and other memorabilia in the country.
'The history of this company is very valuable,' said Peter Michel, director of special collections at UNLV. 'It's the history of the business they are in.'
The collection is likely worth 'in the millions of dollars' based on comparable prices for casino memorabilia, Michel said.
Several displays have been set up in the university's Lied Library in advance of a reception that will be held Thursday evening to announce the gift.

FULL STORY

It is a very significant donation, and along with the MGM Mirage corporate archives, which we are in the process of acquiring, represents the cornerstone of our efforts to document the industry.
_______________________________________
posted by Dave at 9:15 AM

AC war of words

It seems that everyone is catching Borgata fever, but not necessarily in a good way. Trop CEO Paul Rubeli verbally smacked David Jonas for Harrah's cash-back response, while Jonas replied that Rubeli had no idea what he was talking about. From the AC Press:

Despite operating a casino located more than a mile away, Paul Rubeli jumped into the thick of Marina District business Wednesday with a vigorous defense of Borgata's performance and a reproach of Harrah's marketing tactics.

The CEO of Tropicana parent Aztar Corp. told analysts to stop faulting the new Borgata Hotel Casino & Spa for allegedly failing to expand the market.

Citywide slot-machine and table-games revenue each grew 5 percent during the third quarter even while Borgata's marketing and operations were in their infancy.

'I think we should cut those people at Borgata some slack with regard to market growth,' Rubeli said on Aztar's earnings conference call.

He said revenue growth could accelerate in the seasonally slow winter as Borgata's advertising and 2,000 hotel rooms draw more visitors.

Rubeli took issue with anyone who questions Borgata's first quarter of results, which showed cash flow of $30.5 million and net revenue of $150 million. Borgata's share of slot revenue exceeded its share of slot machines by 15 percent and it quickly became the market leader in table-games revenue.

'A 15 percent share of the table games business after 90 days is stunning. In terms of revenue performance, how can anyone question the success of Borgata?' Rubeli said.

Rubeli, an outspoken critic of cash giveaways to gamblers, chastised Harrah's Entertainment for doubling the cash-back rewards to premium players at Harrah's Atlantic City and Showboat.
By name he accused the chief executive of the two casinos, David Jonas, of "flinching" in response to lost business to Borgata. Rubeli even read aloud the cash-back marketing letter Jonas sent to his customers.

"This doubling of cash back will no doubt increase Harrah's and Showboat's reported revenues for October, and no one else appears to be following (Harrah's lead) because it makes no sense in the short term or the long term in terms of customer loyalty or cost effectiveness," Rubeli said.

Giveaways "simply become entitlement programs" for gamblers and ignite profit-eating marketing wars among casinos, he said.

Jonas, informed of Rubeli's remarks, said he cannot stand still while Borgata takes business from Harrah's Atlantic City. He called the incentive program a "very surgical, targeted response to our loyal database customers."

"Paul Rubeli does not have any clue what our reinvestment is and what programs we shaved to pay for this. I think it's an irresponsible statement on his part. He must have a lot more patient shareholders than we do who expect a good return from Atlantic City. My job is to make sure those returns happen," Jonas said.

Coincidentally, both Aztar and Harrah's reported third-quarter earnings Wednesday and both felt the brunt of Borgata, as well as the effects of Hurricane Isabel last month.

FULL STORY

It sure is great to see a casino destination where the operators don't work together, politely praising each other while working vigorously to shore up their own market position. Instead, just call each other idiots. It's less productive, but much more entertaining.
________________________________
posted by Dave at 9:08 AM

Red Rock, Strip West?

I had to work a Red Rock West reference in there. There is some debate over Station Casinos' planned Red Rock Station casino at the 215 and Charleston Blvd, which would feature a 300-foot hotel tower. From theLas Vegas SUN:

Station conducted a community meeting at D'Vorre and Hal Ober Elementary School to try to win more public support for the project. Attendees examined a series of photos, drawings and maps. Station's representatives answered questions.

There appeared to be more opponents than supporters at the meeting, but a true count was difficult because hundreds of people wandered in and out of the meeting. Many said they were concerned about the height, 300 feet, of one of the proposed towers, and dozens wore stickers that said, "Don't Bring the Strip to Red Rock."

The casino would be a little more than five miles from Red Rock National Conservation Area's visitors center, and would not be visible from there, casino officials said....

"Station should learn to play by the rules, which allow a 100-foot casino," said Glen Arnodo, political director for the Culinary Workers Union, which is fighting the proposed casino.

"It's a bad idea to put a Strip-sized casino in a neighborhood, especially next to Red Rock Canyon," Arnodo said.

The union, working with the Sierra Club, mailed 16,000 color pamphlets to area residents and produced the anti-casino stickers that were handed out Tuesday night. Arnodo said the union is interested because Red Rock is a natural treasure that needs to be protected.

But Station Casinos Vice President of Corporate and Government Relations Lesley Pittman said the union management has ulterior motives for fighting the project: Station Casinos are non-union shops; its employees don't belong to the union.

FULL STORY

It's not surprising at all the the union is against the plan. I have the feeling that if Station was building a charity hospital, the union would block it, given that Station is non-union. To be fair, Station would probably block anything that would benefit the union, as well.

In any event, there are legitimate views on both sides, and this debate highlights the "development vs. environment" discussion that increasingly takes place when new projects are proposed.
______________________________________
posted by Dave at 8:58 AM

Slots, lotteries, and poverty

A Maryland study commissioned by a legislator opposed to the expansion of legal gaming has shown a link between poverty and lottery sales. From the
Las Vegas SUN:

A recent analysis of lottery records and census data by the Maryland Department of Planning shows a correlation between Zip codes with high lottery sales and poor neighborhoods.
The study finds that districts that sell the most lottery tickets per person have more poverty, more minority residents and more high school dropouts than elsewhere. Many of those districts are in Prince George's County and Baltimore, but they are also in rural areas.

FULL STORY

This doesn't address the question of whether everyone is gambling in Maryland, but poor people are gambling more on the lottery as opposed to visiting racetracks or casinos. In order to be more persuasive, the study should look at all gambling behaviors.
_________________________________
posted by Dave at 8:49 AM

"We cannot afford a slot machine gap!"

Anyone who saw Dr. Strangelove should find that funny, if they know the context. If not, trust me, it is funny.

This is in reference to a trend in today's gaming news: Ohio, Massachusetts, and Alabama are all considering some kind of gaming. The
Indy Star has the details on the Buckeye State:

Ohio's latest proposal for video gambling machines could be accelerating a gambling arms race among states.
A plan in its fourth incarnation before Ohio lawmakers would ask voters to approve a constitutional amendment in March to allow video gambling at the state's seven horse racetracks.
Neighboring Indiana, West Virginia and Michigan allow some form of casino gaming or video lotteries. Pennsylvania and Massachusetts _ like Ohio, trying to keep gambling dollars within state lines _ also are considering video gaming to compete with their neighbors.
'It's interesting how the states compete with each other for this,' said Richard McGowan, associate professor of economics in Boston College's Carroll School of Management.
'They're all going to get some revenue out of it,' he said. 'Clearly they're not all going to get what they think. They're all going to cannibalize one another.'

FULL STORY

There is also an interesting story about Massachusetts possibly getting a gaming commission that would use eminent domain to seize land and resell it to a gaming company at a profit. That way, the state will benefit from the land sale, rather than any greedy, shiftless private land owners. From the Boston Herald:

``If we move ahead with gaming, so many people out there are trying to make a buck; why don't we make sure the assets go to the people and not some developer?'' said Morrissey (D-Quincy), who co-chairs the Government Regulations Committee.
FULL STORY

Aren't the "people" out there trying to make a buck part of "the people?" Or did I just miss something? I think something is up with this.

Completing the troika of gaming expansion articles is one in the Sun Herald about Alabama. It is interesting because the casinos are actually proposed for large cities, proving that someone hasn't read Suburban Xanadu:

One of the biggest stories in the South over the past 13 years is the transformation of the conservative Bible Belt into a hotbed of legalized gambling.

Mississippi and Louisiana opened dockside and land-based casinos. Lotteries sprang up in Georgia, Tennessee, Arkansas, South Carolina and Louisiana, joining Florida, which established its lottery in 1986.

Alabama remains the lone holdout for state-regulated gambling, although the state does have Indian casinos and wagering at dog tracks. Plans for a state lottery were defeated in 1999 and some political observers blamed the lottery push for causing Gov. Don Siegelman to fail in his re-election bid last year.

With the recent defeat of a $1.2 billion tax plan pushed by Gov. Bob Riley and a looming deficit of more than $500 million, some legislators say it's time for Alabama to pass a gambling bill.

Rep. John Rogers Jr., a Birmingham Democrat, said he will introduce a bill in February amending the state constitution to allow casinos to come to Alabama.

"We're surrounded by gaming states," said Rogers. "Our people are crossing the border in droves to gamble. We need to stimulate the tide to help out our own state."

Rogers wants to see a limited number of casinos established only in Alabama's largest cities: Mobile, Birmingham, Montgomery and Huntsville. He said the revenues from gambling halls will easily pull the state out of its deficit.

FULL STORY

Gaming is now the panacea for all kinds of budget problems, I guess. It seems that the last strongholds of anti-gaming sentiment are crumbling, as it makes less and less sense not to legalize casinos and recapture revenue that is leaving the state anyway. Or is it?
________________________________

A get well gift not to get

I'll probably get in trouble for this, but if you want to send a gift to Roy Horn, recuperating after a near-death accident involving the performing white tiger Montecore onstate at the Mirage, don't send this.
___________________________
posted by Dave at 3:54 PM

Palm Springs, gambling mecca

Yes, it's true. With several Indian casinos, Palm Springs is promoting itself as a gaming destination. It even has a casino association. It's funny that Atlantic City, the #2 gaming destination in the nation, is barely holding its own casino association together and can't seem to find an advertising budget for its new slogan, but Palm Springs has a vibrant casino association that is quoted in thedesertsun.com:

"'With five casinos, over 6,649 slot machines, including your favorite reels of video games and video poker, 163 table games and millions of dollars in cash prizes and merchandise, Palm Springs Desert Resorts has become the gaming capital of California.

'All the casinos are within an easy drive from one another and all are surrounded by hotel accommodations ... plus there are over 78 restaurants ... to serve our casino guests.'

It appears to be an appealing pitch to many.

Each of the five Indian casinos in the Coachella Valley and Casino Morongo near Banning claim large increases in visitors - though they will not release actual figures, and four of the six have announced major expansion plans.

At the same time, casinos in Las Vegas report only sluggish growth going back to Sept. 11.

Officials said their plans were not affected by the Sept. 11, 2001 terrorist attacks. In fact, most of their plans came after 9-11; what did affect them was the casinos' success, they said.

That's the opposite of most of Northern Nevada, which continues to see declining gaming revenues.

In July, the latest figures available, casino operators in Washoe County performed 5.7 percent worse than July 2002. Casino win - the amount gamblers lost - was $65.8 million, according to the Nevada Gaming Control Board. Win dropped 0.8 percent in Sparks to $13.5 million."

FULL STORY

While it seems like a novelty now, this signals a huge shift in gaming from distant destination resorts to more-or-less local presence.
_________________________________________

Suburban Xanadu update

The book appears to be picking up some momentum. After an initial spike, when I'm guessing there was a sudden rush of institutional orders, online sales appeared to slump. But these figures show the book is battling back and will retake its place on the Vegas Best Sellers list very, very soon:
amazon.com sales rank: 666,348
bn.com sales rank: 104,421
How can you help? If you haven't already, definitely buy yourself a copy of Suburban Xanadu. If you have read it, please post a review to either site.

Phi Alpha Theta, the undergraduate history honor society, is holding a reception in honor of the book. From the press release:

David Schwartz, coordinator of UNLV's Gaming Studies Research Center, will read selections from his new book, "Suburban Xanadu: The Casino Resort on the Las Vegas Strip and Beyond," from 4-6 p.m. Oct. 28. The reading will take place in the Honors College, located on the third floor of UNLV's Lied Library.
During the event, which is free and open to the public, Schwartz will discuss the research involved in writing the book, answer questions from the audience, and do a book signing. Copies of the book will be available for purchase at the event. Refreshments will also be served.

I look forward to seeing those of you who will be in Vegas on the 28th and plan to attend. If you'd like to learn more about the book, go here.
____________________________________
posted by Dave at 3:13 PM