Online Casino Spotlight

A man walked and danced on a baccarat table while the game was in progress and Caesar’s allowed this to occur. Now, they are willingly paying a $250,000 fine to the Gaming Control Board because of it.

The Gaming Control Board’s Complaint

The Gaming Control Board filed a complaint that the casino did not take the proper actions to protect the customer and the game that was being played. Caesar’s and the Board recently reached a settlement to avoid any type of litigation. Next month, this fine will be presented for final approval to the Gaming Commission.

On October 10^th, 2009, a customer was engaged in a high-limit game of baccarat when they decided to climb onto the table from their chair, walk around and do a little dance. This happened on three different occasions during the session. The allegations state that while on the table, he also placed a bet each time prior to standing on his chair and eventually sitting back down.

The Details of the Settlement

In the settlement, Caesar’s acknowledges the action and accepts the allegations of the complaint. They are ready to pay the fine for not taking any action when this incident occurred. Litigation and legal troubles are extremely detrimental to the reputation of the casino, especially with the Gaming Control Board. This is the reason for the choice of a settlement.

Since this is such a rare occurrence in the gaming industry, it is believed that due to the amount of money the patron was wagering in the high rollers room, Caesar’s management did not want to scare away a big fish. As a result, they opted to allow him to pretty much do whatever he wanted as long as he continued to gamble at their casino.

Casinos are in the business of providing entertainment through gambling, nightlife, restaurants and shows. Although this gentleman was wagering large amounts, there must be a line that does not allow high rollers to do whatever they want. Yes they are pumping a great deal of cash through the casino cages, but that shouldn’t allow them to act disorderly and disrespectful to their gracious host.

Caesar’s has found that out the hard and costly way. In the future, it is unlikely they will allow this type of shenanigans to occur. If this behavior continues, they will be paying large sums often just to avoid legal troubles.

For the first time in over 25 years, the Tropicana Las Vegas is going through renovations. In July of 2009, the Tropicana officially pulled themselves out of bankruptcy. Since that point, management has spent a considerable amount of time and money upgrading the property.

The total cost of renovations is around $165 million. Areas that are part of the renovation include:

• The casino floor
• Restaurants
• Pool
• Hotel rooms
• Convention center

In addition to these upgrades, the Tropicana is planning on building a nightclub-pool attraction named The Mob Experience. This will contribute to paying off this once run-down property. Despite a decrease in revenue and room rates for the second straight quarter; renovations, marketing and advertising for the Tropicana Las Vegas has increased the number of weekend visitors.

From now until the end of 2010, weekend room rates at the Tropicana are between $99 and $229 per night. This rivals competitors rates found at the Luxor and Treasure Island. Normally, weekend rates at the resort linger between $129 and $159 per night. The highest rate of the year is $229 for New Years Eve and the final weekend of September when many conventions are in town.

Prior to the renovations, some rooms were as cheap as $38 per weekend night in 2009. This was on track with rivaling casinos like the Sahara and the Rivieria. The room rates in 2010 compared to 2009 were primarily attributed to a rise weekend demand. This shows great promise for the casino industry.

The last time rooms at the Tropicana were renovated was in 1985. Recently, the casino announced that the renovation of the hotel rooms had been complete. They have been updated with a South Beach motif including new color patterns, carpeting and furnishing. All rooms are equipped with brand new mattresses and 42 inch plasma televisions.

This has significantly increased online reviews thus improving bookings at the hotel. In addition to renovating the hotel, the Tropicana upgraded its logo and marketing campaign to “We’re Changing Everything.” The hotel expects to complete the casino and floor phase of the renovations with an extended sportsbook including mobile gaming.

The Tropicana has certainly changed its reputation from an unclean, old casino to a modern, South Beach-style hotspot. Since emerging from bankruptcy in 2009, they have really hit the ground running and are on track to climb back into the black.

Cantor Gaming; the operators of the M Resort, Venetian and Palazzo sportbooks in Las Vegas, recently released a statistic that shows three sportsbooks comprise 15 percent of the states spots wagering. There are a total of 208 books in the state of Nevada. This information was gathered from the Gaming Control Board.

Cantor Gaming’s Secret

Cantor Gaming is one of those books profiting around $375 million per year. The reason for such a large slice is because of technology and offering new gadgets. For instance, Cantor Gaming provides eDeck devices at the M Resort, Venetian and Palazzo. These are pocket casinos the size of a PDA and can be used to play other casino games while in the sportsbook. They can also be used to place bets on sporting events already in progress.

Used Elsewhere

These devices and ideas were developed by Cantor and have been used in European casinos for the past ten years. Other companies have attempted in-process betting by wagering on the direction a player will move during specific football plays.

The M’s System

The M’s system occurs when a player deposits money into a password protected casino wagering account. The player can then login utilizing a mobile device or a station within the sportsbook. In order to place a bet, the mobile device must be registered to that user which can be completed at the sports book ticket window. Bettors have the freedom to use them as long as they want and must return them when completed.

The M’s system is based several variables. One of these includes each player’s overall performance. Every player on each team is rated with a specific value which has a heavy influence on program’s algorithm.

Each time a team scores, the odds change instantly. Therefore the bettor can benefit from the new opportunity to bet on a specific team. Also, gamblers can wager on specific actions that may occur during a game. For instance, will a team acquire a first down during the current series or will a field goal be good.

Initial Testing

The first tests of this system in the United States occurred at the Venetian in 1998. They furthered their presence by acquiring companies that could contribute to the launch of this system. Finally in March of 2009 the system went live at the M Resort.

Technology is changing the way we eat, sleep, live and play. The M Resort’s innovative ideas are proof of this considerable change over the traditional betting methods. As we progress all casinos will become more advanced to stay one step ahead of the competition.

Many Nevada-based casino operators that own some of the most well-known brands in the industry may have caught a break with online gaming. U.S. casinos have had to sit back and watch the multi-billion dollar online gaming industry explode, without them getting a piece of the action. However, this may change.

Operating online-based casinos is currently illegal under United States law. New legislation has been proposed to punish foreign companies that have significantly profited by accepting bets from U.S. players. The idea is to help U.S. casinos improve their profits as less foreign gaming sites may now allow Americans. In turn more gamblers will visit land-based casinos.

Recently, the House Financial Services Committee passed a bill legalizing and regulating online gaming. Attached to the bill are amendments that prevent current online operators that are violating U.S. laws from obtaining a license under the new bill. For instance, one section prohibits those individuals that continued to operate or work for illegal online casinos from obtaining a license.

Another amendment allows the Treasury Department to outsource the regulation of the industry to state government agencies. Many states currently regulate land-based gaming operations so they have vast experience in the field. Also, delegating this responsibility to state agencies would eliminate a potential federal bureaucracy.

The restrictions of the bill were primarily supported by conservatives and moderates that are opposed to online gaming. They feel those that operated and participated in illegal casinos were committing a criminal act. Although advertised in the U.S., many of the popular poker brands are still illegal to play online. Currently, online gaming sites operate offshore so they don’t pay U.S. taxes.

This law would prohibit two of the world’s largest poker sites, PokerStars.net and FullTilt.com, from obtaining a gaming license. This would pave the way for land-based casinos like Harrah’s to create new gaming options. Harrah’s currently owns the World Series of Poker franchise. If the law passes, it would become difficult for those online gaming entities that current accept bets from Americans to legally operate.

Many of the controls in the bill mirror Las Vegas rules. These include:

• Conducting background checks of owners and managers
• Financing must be from a reputable source
• Licensed operators must have integrity and good character

Online gaming sites have been pushing for a law similar to this to be passed for many years. If this is passed by the House of Representatives, U.S. land-based casinos will enter the market. This will have an excellent effect on the economy since the American dollar will remain in the U.S.

Industry titan Harrah’s Entertainment Inc. of Las Vegas is backed by many investors with deep pockets. The company has continued to progress with its properties despite billions of dollars of loss and a debt of $22 billion as a result of the current recession. Moody’s Investor Services recently released a report questioning the current growth strategy implemented by Harrah’s.

Moody’s Point of View

One of the main points of the report is that Harrah’s debt encumbrance continues to leave the company with deficient funds for maintenance and growth plans. Moody’s suggests that Harrah’s restructure the debt load, sell off assets, or go public on the stock market. At the same time, the three options all present new obstacles to the company.

Moody’s claims that like many other casinos, they need to find a method of bringing new customers in while retaining current consumers as the gaming industry is in decline and unlikely to rebound in the near future. Despite financial engineering and some restructuring, debt payments consume 90 percent of earnings prior to depreciation, amortization, interest and taxes.

Furthermore, Moody’s believes Harrah’s isn’t investing more in their properties, although with insufficient cash, it’s a difficult task to undertake. Overtime this substantially damages their competitive position. It is clear that management is more focused on implementing growth than reducing the amount of debt.

The Numbers

Harrah’s owns nine Las Vegas Strip properties including Bally’s and Caesar’s Palace. Although second quarter financial results are yet to be released, from 2008 to the first quarter of 2010, the company incurred $4.4 billion in losses, much in the form of asset write-downs. This was to compensate from their inability to generate profits.

Additionally, Harrah’s is challenged with annual interest costs of almost $1.7 billion. On the positive side, Harrah’s has managed to decrease operating costs by hundreds of millions of dollars.

Harrah’s Future Plans

Although no official comment has been made regarding their debt burden, Harrah’s recently acquired Planet Hollywood on the Las Vegas Strip with plans to attain Ohio’s Thistledown Race Track. Additionally, it is rumored they are looking to expand to a property in Mulvane, Kansas; all of this will substantial debt.

Although backed by deeply pocketed investors on Wall Street, Harrah’s needs to address the major debt issue at hand with a proper debt strategy. Expansion with no excess capital is a major mistake during a global economic recession.

Virgin Casino recently announced its partnership with Microgaming. In the future all Microgaming Flash casino games will be available at Virgin Casino through Quickfire software. Microgaming currently has approximately 400 games which will slowly be added to the Virgin Casino system.

About Microgaming

Located on the Isle of Man, Microgaming is the largest online gaming software developer. They provide many casinos with hundreds of different games including those in a Flash version. Microgaming was also one of the first companies to emerge in the online gambling software development field in the late 1990’s.

Thunderstruck Slots

Thunderstruck, a popular online slot game, is already up and running within the system. Thunderstuck is a five reel slot game featuring nine paylines. Its popularity is due to the excellent graphics and audiovisual effects. The game is based on Norse God Thor which is the origin of the symbols. Thor symbols payout double with a 10,000 fixed jackpot and his Rams award 15 free spins for triple payouts.

The Promotional Details

Virgin Casino ran Thunderstruck Cash Back Week to promote the new game. Each day players received 20 percent of their wagered cash back. There is a list of exclusions on the Virgin Casino website. The cash back is calculated through the new loss for bets on that specific day with payouts the following day.

Virgin’s Software

Market research has proven that customers want a wide array of games to play online. To fulfill this order Virgin has aligned its strategy to offer as many games as possible to give the player more choice. Virgin uses software from WageWorks for their overall casino interface. However, they offer games from other online gaming software developers such as Cryptologic, Fremantle and Ash Gaming.

Virgin Casino

Virgin launched its internet based casino platform back in 2008. Since then, they’ve slowly been introducing a variety of games to the public. They currently offer one of the widest selections and are one of the largest online casinos in the United Kingdom. With the addition of Microgaming software, they will significantly increase their gaming variety to become an industry leader.

The collaboration between Virgin Casino and Microgaming is an enormous partnership between two industry leaders. The numerous gaming options that Microgaming provides will make Virgin Casino one of the largest online casinos in the world with the most game selection to offer their customers.

Black Gaming, LLC, based out of Mesquite, Nevada was approved for a Chapter 11 bankruptcy reorganization plan. Due to the recession, Black Gaming was unable to pay its debt of $253.4 million. During the case, the value of all assets was estimated at between $85 and $90 million.

What Does this Mean?

The reorganization plan will allow Black Gaming to restructure its debt so the entity will owe $143 million less. The result is a much more manageable financial structure. This will help them become a stronger organization that will focus more on providing the best entertainment value for their money.

The Terms of the Bankruptcy Plan

There are a few terms of the plan in which the company must adhere. For instance the $14.8 million Senior Credit Facility that Black Gaming owes Wells Fargo Foothill Inc must be paid in full. Additionally, any unsecured claims which include those from vendors are to be paid in cash to the maximum allowed by the bankruptcy code.

Also the Senior Secured Noteholders will replace their notes, valued at around $143 million, for a new credit facility equating to approximately $62.5 million. Furthermore the Senior Subordinated Noteholders will have the ability to purchase equity interests in the Reorganized Black Gaming as a substitute for their notes and claims.

In addition, Black Gaming executives, owner Robert R. Black Sr. and a Newport Global Advisor must contribute $18.25 million as a substitute for 100 percent of the established equity interests within the reorganized company. All executives will remain in their current roles with their current titles.

The Unsecured Noteholders

Unfortunately the Unsecured Noteholders are still owed $75 million by Black Gaming. As a result attorneys were considering filing an objection to the reorganization plan as it doesn’t include this group. They were also scrutinizing the plan as well as the value of the assets presented during the case.

Last week the deadline came and went with no objections filed. The U.S. Trustees office also had a few objections, but Black Gaming overcame these as well. Accordingly the terms of the bankruptcy plan will remain as-is.

Gaming across the country has been damaged by the recession and this is one result. This plan should help Black Gaming return to profitable margins while paying off their debt. Unfortunately the Unsecured Noteholders will suffer. Since Black Gaming is a major employer and presence in Mesquite, Nevada, this action needed to be taken.

On Wednesday, June 23^rd, 2010, the Wynn Las Vegas LLC sued IBM Corporation over a $9.7 million contract disagreement. The executive staff at the Wynn Las Vegas, including the owner, disputed that IBM overcharged them for use of their MAXIMO software which was developed by MRO Software, a subsidiary of IBM.

The Use of the Software

The lawsuit was filed with the federal court in Las Vegas. The software was purchased by Wynn Las Vegas in order to log and track the numerous work orders, inventory of materials, equipment needs and a few other maintenance purposes.

What was the Main Issue with the Software?

Wynn, LLC states that they paid hundreds of thousands of dollars for the initial software package and the various upgrades since its implementation. They’ve constantly endured system crashes and various other problems. As a result, IBM conducted an audit on the software in late 2009/early 2010 to verify bugs and other problems.

The contract between the two companies was that Wynn would set up 500 tier-1 users of the program. Wynn claimed that none of the configurations IBM setup met the definition of a tier-1 user. IBM later demanded that the hotels had to purchase an additional 2,000 licenses at a cost between $2,300 and $4,600 a piece.

IBM’s Justification of the Costly Bill

According to IBM, they were charging for every employee that had been using the MAXIMO software including the housekeepers that merely utilized the program to report on guest maintenance requests. IBM claimed that even these individuals must have a copy of their own license.

The Wynn’s Prerogative

The defense by Wynn lawyers is that IBM was using “bait and switch” tactics by dangling upgrade incentives without honoring the Wynn’s right to use the program at various permission levels in which the hotel had earlier acquired. The Wynn LLC is viewing these claims as absurd and unwarranted. IBM has pestered the casino for many months, demanding $9.7 million for past and future use of the software.

Although the allegations seem to be valid, IBM has still yet to comment on the matter. Therefore all facts are not yet out in the open for discussion. When two major corporations take matters to court, the intricacies of the case are numerous. This is a situation that will immediately be settled or will linger in court for many years to come.

The free drinks while gambling at a casino is a long tradition. These are staples in places like Las Vegas and Atlantic City. Unfortunately, as casinos have expanded to other areas of the country, this tradition has not followed.

There are many reasons for this lack of Las Vegas at every table. Depending on the area of the country, some view this amenity as immoral. Other casinos are hit hard by the economic crisis and cannot afford to give away free alcohol. As new casinos pop up, local legislators, many of whom do not support the arrival of a casino, set the guidelines. Consequently, they do not approve of this practice as they would like to maintain balance.

Many avid gamblers and party-goers are disappointed by these actions. They feel as if the combination of gambling and drinking run hand-in-hand. Oho recently passed a law that prohibits complimentary drinks in all new casinos. It also prohibits the 24 hour sale of alcohol in Ohio. Other Midwestern states that follow this same practice include:

• Missouri
• Illinois
• Indiana
• Kansas

The nine states (not including Native American establishments and racetrack casinos) that do permit free alcohol while playing include:

• Colorado
• Iowa
• Louisiana
• Michigan
• Mississippi
• Pennsylvania
• Nevada
• New Jersey
• South Dakota

Kansas takes the idea of no free drinks in casinos even further by outlawing free drinks at any establishment across the state. There is also a statewide ban on any type of happy hour specials as well as games that promote drinking, such as beer pong.

The combination of Mothers against Drunk Driving (MADD) and bars, restaurants and taverns have lobbied against free alcohol at casinos in Ohio. Competing establishments state the economic impact as a major factor. They saw free drinks as impeding on the willingness of casino-goers to go out and eat dinner, or visit a local tavern for drinks.

This mentality has made its way back to major casino areas like Las Vegas and Atlantic City. Both areas showed a significant drop in the amount of drinks comped in 2009. They have come to realize that they sell much more alcohol when they’re not giving it away.

Although the elimination of free booze impedes on a long-lived tradition, most of the reasons point back to the economy. In this current climate, it’s difficult for businesses to give away anything for free. Perhaps once the economy returns to normalcy, the free drinks will return with it!

Going green is all the rage among people and businesses. A green lifestyle simply means cutting back, wasting less, and helping to sustain the planet. In business, it can also mean publicity and more costumers. People love to support green businesses, after all, why not help support those who support the planet? The Las Vegas Sands casino is certainly a green business worth supporting. After they launched their ECO 360 program, the Las Vegas Sands is well on their way to being the greenest casino in Las Vegas.

With all of the competition, it is important to find a way to stand out from the crowd, however, to do so and help the environment simultaneously is certainly worthy of applause.  You may wonder how the Sands is going green. Below are several of the factors that are leading the way in their green efforts.

The Installation of Astro Turf

Astro turf is a strange substance. It looks like grass, but unlike grass it does not need watered or maintained. Astro turf is an ideal solution for places like Las Vegas, Nevada where watering the grass would take quiet a bit of water, which is why the Sand has replaced all of their lawns with Astro Turf.

Energy Efficient Light Bulbs

Energy efficient light bulbs are a great way to save resources since they use less then half the electricity of a standard light bulb. Which can mean big savings in a place like a casino where the lights stay on 24 hours a day. However, the Las Vegas Sands went a step further and had light bulbs developed especially for their casino which are even more environmentally friendly then your standard CFL bulbs.

Solar Thermal Systems

The Las Vegas Sands features a beautiful and large pool. That pool will now be heated year round by solar power. The company recently had large solar collectors installed which are designed to be the only heat source for the pool. Solar energy requires no use of resources.

If more casinos take notice of these changes and follow in suit, the amount of energy saved would be substantial, and this could quite literally be the best bonus the casinos offer.