Online Casino Spotlight

The CEO of Pinnacle Entertainment, Anthony Sanfilippo, recently announced plans to cancel a large casino extension project the company had planned in Lake Charles, Louisiana.

The Lake Charles, Louisiana Plan

Former Pinnacle Entertainment CEO, Dan Lee, developed plans for a large casino and resort known as Sugarcane Bay in Lake Charles, Louisiana. This casino was to be in addition to Pinnacles previous Lake Charles casino, L’Auberge du Lac. The project was originally set to cost $305 million and included a casino and a hotel. When CEO Dan Lee stepped down, the newly appointed CEO, Anthony Sanfilippo, scaled the Sugarcane Bay project back to be a casino extension on an already existing hotel. Then, plans for Sugarcane Bay were canceled all together.

Pinnacle Entertainment

Since the new CEO of Pinnacle Entertainment has taken charge, several projects for Pinnacle Entertainment have been either scaled back or canceled. These cancellations include a riverboat casino in St. Louis, Missouri and a large casino resort in Atlantic City, New Jersey. However, Pinnacle Entertainment recently built a large casino resort in the suburbs of St. Louis and still operate another casino in the downtown area.

Pinnacle Entertainment in Louisiana

Pinnacle Entertainment is a large part of the gaming industry in the state of Louisiana, and according to Pinnacle Entertainment CEO Anthony Sanfilippo, the company plans to keep ties with the state. Currently, Pinnacle Entertainment runs casinos in New Orleans and Lake Charles, Louisiana. They also have plans to build another casino in the city of Baton Rouge sometime in the near future.

The Future of Pinnacle Entertainment

Overall, the downsizing of Pinnacle Entertainment appears to be a defensive maneuver to the current economy and not a warning sign of trouble in Pinnacle Entertainment. The company maintains plans to continue to build and operate casinos in several states across the nation.

The newest luxury resort and casino megaplex, CityCenter in Las Vegas, has released model penthouse suites available for sale in their Mandarin Oriental building. These units are the height in luxury, at the best location, and selling very well despite the economic downturn.

The Mandarin Oriental Suites

The Mandarin Oriental offers one, two, and three bedroom permanent residences inside the CityCenter megaplex. These suites range from 1,000 to 4,000 square feet and cost about one million a piece. Each unit was built with the newest designs and luxuries in mind, but the biggest selling point to these homes is the location. Mandarin Oriental is located in the middle of CityCenter and offers residents access to all of the action of Las Vegas’ latest and greatest building development. The suites cost in the range of one million a piece. So far 29 units have been sold in the development.

CityCenter

For those not in the know, CityCenter is the latest and greatest Las Vegas, Nevada has to offer. Construction on the megaplex hit a major turning point earlier this year when the first casino, the Aria, was opened to the public. So far CityCenter has been a success, despite economic downturn and early profit losses. MGM, a major holder in the CityCenter idea, did see an initial loss in profits. However, these are expected to turn around as the economy takes a turn for the better. The CityCenter project blends a combination of Las Vegas style gambling, luxury, and entertainment with modern technology and green friendly building. It is truly a work of modern art.

Suite units are still available for sale in CityCenter, both in the Mandarin Oriental and other locations across the megaplex. While these suites will not go cheap, there has been a high interest in the location, and it likely the center will fill up quickly.

Despite many doom and gloom predictions about the future of the gambling industry, many of the top names in both live and online casino entertainment are posting very positive numbers this season. On the brick and mortar scene, Macau continues to be the gambling destination of choice among international travelers. As proof that 2010 is going to be a very good year indeed for Macau’s casino operators, they posted record-breaking numbers last month with over $1.76 billion in combined revenue – a 70% increase over April of 2009.

Even Las Vegas’ operators, many of whom had a dismal winter, seem optimistic as the city’s big tourist season rapidly approaches and as the newest attraction – City Center – continues to post solid numbers. There are even signs that the regular crowd is starting to return; local gambling giant Boyd Gaming also posted a profit in the first quarter and is projecting growth in the next, largely due to the pending acquisition of their primary competitor, Station Casinos.

Even online casino operators experience occasional lulls, but April wasn’t a month that saw many of them. One of the leading casino software providers – Playtech – announced significant growth (29%) in their gross income during the last quarter. As their new collaboration with William Hill gains momentum, and once France officially opens its doors to outside operators, the company expects to see even more growth in the quarters to come.

Speaking of France’s recent decision to fully legalize online gambling, many online casino industry insiders are predicting that the move will positively affect the second quarter numbers of many different operators. With poker’s biggest live event – the World Series of Poker – rapidly approaching, many online poker rooms are also expected to get a revenue boost this season.

Even companies like the ubiquitous 888 Holdings – which had mixed results between revenue gains in their casino sector and small losses in their poker branch – are making optimistic statements about their expected revenues for the whole of 2010. This logical but hopeful attitude seems to be spreading throughout the industry as many of the biggest operators are taking chances and expanding their offerings this year.

The iconic Lady Luck Casino opened in downtown Las Vegas in 1964 as Honest John’s casino.  At the time of its opening, other historic Vegas Casinos like the Tropicana and Circus Circus were opening their doors on the Vegas Strip.  In 1983, the property was renamed Lady Luck and was at the height of its popularity.  Between 1986 and 1989 a 17-story tower and another 25-story tower were added.

Original owner Andrew Tompkins sold Lady Luck to Isle of Capri casinos of Biloxi, Mississippi.  In the spring of 2005 Henry Brent bought the Lady Luck from Steadfast Cos. of Newport Beach, California.

Lady Luck Closes

The 743-room Lady Luck closed in February 2006, but in the time between 1964 and 2006 the Lady Luck was one of the premier casinos in all of Las Vegas.  When the Lady Luck closed it was downtown’s third-largest casino, sitting on 6.27 acres of land.  The closure meant the loss of 684 jobs.  The original plan was to close the hotel/casino for one year for major renovations, but those plans never came to fruition and the building was sold again in 2007 to the CIM Group, a California development company.  Despite the purchase, the company has allowed the property to continue sitting dark.  The interior spaces of the hotel were largely demolished in preparation for renovations, but no further action has taken place.

Future Plans

In July of 2009 CIM did begin tearing down a building skeleton at the corner of Fourth Street and Stewart Avenue, but nothing of note has happened since.  Part of a 2008 deal that CIM reached with Las Vegas City Council states that renovations to the casino must be started by December of 2009, however that deadline could be extended.  It is not clear if the deadline will be extended, but it is clear that city officials are not happy with the large amounts of debris and garbage that have piled up on the property.

CIM claims current economic conditions as the reason for the stall in renovation plans.  They say they do plan on forging ahead with renovation plans once the economy turns around.  At this point the empty building seems to have little chance of returning to its former iconic status.  The best bet for this historic building is a wrecking ball, as has been the case with so many hotels and casinos that made Las Vegas famous.

Sega Games isn’t just about hedgehogs anymore; the company is branching out to the world of online casinos. They recently announced that they would are launching their own brand of online casino and poker room.

What is Sega Games?

Sega Games makes video games for several consoles like the Playstation 2 and Playstation 3. Sega Games has produced over 900 video games in total, but the company may be most famous for their Sonic the Hedgehog games. Sonic the Hedgehog has been played on several gaming consoles and even had his own cartoon series. In recent years, Sega Games took a back burner to larger companies like Nintendo but has recently announced that they are branching out in to the casino world.

Sega Games Launches an Online Casino

It may seem like a big leap to go from video games to internet gambling, but it may not be for a company like Sega Games. Sega has launched two new websites, SegaCasino.com and SegaPoker.com. Both websites will host Sega branded games. Both sites will offer players the chance to win actual money.

SegaCasino.com

SegaCasino.com will feature both popular poker games as well as virtual slot machines. Currently, SegaCasino.com offers Blackjack, Roulette, and a few other poker games with plans to expand in the upcoming year. SegaCasino.com also hosts several virtual slot machines that are based around the Sega brand name. Players have the chance to win several bonuses that are exclusive to the Sega Company.

SegaPoker.com

SegaPoker.com is a poker room hosted separately from SegaCasino.com. The poker room offers players a chance to compete against each other and win money by playing Sega style poker games. The poker room is live action and can host as many as 30,000 players at a time. This will make the stakes high and the action live.

The Future of Sega Casinos

Sega hopes to cash in on the billions of dollars spent on online gaming in Europe each year. They have several plans to expand both SegaCasino.com and SegaPoker.com through the duration of 2010. At the launch of both websites, Sega will be hosting tournaments in their poker room and special incentives for the first players to join in on the action at SegaCasino.com

The opening of the enormous Las Vegas CityCenter complex has many Vegas residents excited at the prospect of 10,000+ new jobs, but many wonder if all of these new employees might soon be in line at the unemployment office.  The CityCenter boasts thousands of rooms and a vast casino, but tourism to Vegas has seen a sharp decline.  Even with unprecedented flight and hotel deals to Vegas, vacationers are still shying away.   In addition to the CityCenter project, new wings of the Hard Rock Hotel and Planet Hollywood add even more supply to an already very weak demand.

Both the Hard Rock Hotel and Planet Hollywood claim the new casinos are aimed to attract higher-end customers whose tastes and travelling are not affected by the recession. While high-end customers may be more inclined to travel to Las Vegas regardless of economic conditions, 500 rooms at Planet Hollywood, starting at $350 a night on weekends, may still be a huge void to fill.  It is true that places like MGM, the Wynn and Belagio have faired better in the recession than lower end establishments like the Tropicana, Hooters and the Stratosphere.

Low-End Casinos Hit the Hardest

Late night at lower-end Vegas establishments can sometimes resemble a ghost town more than an action-packed entertainment destination.  Things have gotten so bad that some weekday prices for a hotel room at a place like Hooters or Circus Circus have dipped to a range of $20-$25 per night.  Some of the promotions low-end places are running are almost unheard of.  For example, the Tropicana is currently running a promotion through January 30 that includes $50 in free slot play when booking a stay at $50 per night.  At the other end of the Strip Circus Circus is running a special that entails booking two nights now and receiving a free night on a return visit.  Even the higher-end New York, New York is offering a promotion where you book three nights and get the lowest-pricest night free.

Preparing for a turnaround

Each casino operator is hoping to be ahead of the curve if and/or when the economy turns around and tourism in Vegas begins to flourish once again.  The problem is that there is a fine line between getting a jump on the competition and making poor business decisions.  If and/or when the economy stregthens to a point where droves of people flock to Vegas again, they will have more choices than ever.  Combine the drastic increase in supply with the increasing popularity of Internet gaming and it becaomes clear that things don’t look too good for a drastic upswing for Vegas casino operators any time soon.

A quick scan of hotels.com shows many recognizable Las Vegas hotels offering rooms for as low as $20/night on weekdays and even $40/night on weekends.  Consequently, The Sahara and Binion’s have closed most or all of their hotel rooms. It was determined that it makes better business sense to close the rooms than offer rates lower than $20/night.

Binion’s has closed all 365 of its hotel rooms and The Sahara has closed two of its three room towers.  The situation at Binion’s seems to be direr since they have also cut 100 jobs and have no plans to re-open the rooms anytime soon.  In addition to the rooms, Binion’s Original Coffee Shop is also closing and keno will no longer be offered.  However, the casino, sports book, and poker room will remain open.

The Sahara hopes to re-open some of its rooms after the lull in demand during the winter months.  A loophole in the law requiring casinos with non-restricted gaming licenses to have hotels allows Binion’s to close their rooms.  Since Binion’s was open before the regulation was approved it can legally close its hotel.

The Sahara will keep the 1,720-room Tangiers Tower open.  When the current owners purchased the iconic Sahara in late 2007 for $331.8 million they probably never envisioned they would have to close rooms as a business strategy.  Closing rooms during non-peak times of the year is not a new concept, but it is a far cry from announced plans to build a new 1,000-room hotel tower. The renovation plans have been tabled for now, but the hope is to revisit them when an economic turnaround occurs.

Creativity is Key

If current economic conditions continue, don’t be surprised to see other establishments follow in the footsteps of Binion’s and the Sahara by closing entire sections of their hotels.  Places like the Tropicana, Hooters, the Stratosphere, and Circus Circus are currently offering rooms for as low as $25/night.  One has to wonder how much lower rooms rates can go before these establishments also determine that it makes more sense to just close some or all of their rooms.

Closing hotel rooms, limiting hired entertainment to weekends, cutting weekday restaurant and lounge hours, and even cutting back on things like the number of free bottles of shampoo are all creative ways that mid-to-low tier hotel-casinos will have to examine the longer this current recession continues.

The Stratosphere casino, located on the Las Vegas strip, will be hosting a poker tournament in remembrance of Dale Earnhardt with Dale Earnhardt related prizes. In addition to several exciting games of poker, several famous NASCAR drivers will be in attendance, and some of the tournament’s proceeds will go to the Dale Earnhardt Foundation, a charitable organization that focuses on children and our environment.

Who was Dale Earnhardt?

Dale Earnhardt was a race car driver with more then twenty years racing in NASCAR events and several dozen wins. Earnhardt was one of the most popular NASCAR drivers on the track. In 2001 at the Daytona 500, Dale Earnhardt died in a car crash in the last of the race.  Dale Earnhardt was also known for his charitable nature and love of children and the environment. Throughout his career, he routinely gave money to organizations that supported education, wildlife foundations, or needy children. After his death, the Dale Earnhardt Foundation was started to continue this charitable movement for education, children, and wildlife programs.

What is the Stratosphere Casino?

The Stratosphere is a large casino resort located on the Las Vegas strip. The Stratosphere casino is 80,000 square feet. There are more then 1,200 slot machines. Several popular games are found on the casino floor like craps, blackjack, and roulette. There is also a large poker room, which hosts no limit poker tournaments on a daily basis.

The Dale Earnhardt Foundation Celebrity Poker Tournament

The Dale Earnhardt Foundation Celebrity Poker Tournament will be held on February 25^th inside the Stratosphere casino. Dale Earnhardt’s son, Kerry Earnhardt, will host the poker tournament. Several other NASCAR drivers are expected to appear including Scott Lagasse Jr, Andy Ponstein, Danny Efland, Aric Almirola, and Eric McClure.

The poker tournament will have a $150 entry fee, which will go to the Dale Earnhardt Foundation. The winner of the tournament will receive $2,500 as well as a package of Dale Earnhardt souvenir merchandise. In addition to monetary prizes, there will be loads of NASCAR related prizes, signed autographs, and a year’s subscription to iRacing.com.

Entry in to the Dale Earnhardt Foundation Celebrity Poker Tournament is limited to the first 500 players who sign up. There will also be a special promotional price for the Stratosphere’s hotel during the event. Interested poker players can sign up for the poker tournament on the Stratosphere’s website.

Most colleges and universities would prefer its students to stay as far away from casinos as possible.  In fact, in 2006 Duquesne University in Pittsburgh, PA, petitioned the State Gaming Board to block the construction of a slots parlor within a mile of its campus.  The slots parlor was ultimately built across town, but officials at Duquesne would have preferred that it were never built at all.  No such controversy exists at the University of Nevada, Las Vegas (UNLV).  UNLV sits surrounded by casinos and it embraces them.  The William F. Harrah College of Hotel Administration houses one of the world’s premier hotel administration programs.

History of the Program

The program began in 1967 with 16 students.  By the late 1980s, the college had grown so much that it began to branch off into various departments, including food and beverage management, tourism and convention administration, and hotel management.  Additionally, a Master’s degree option was added. At the end of the 1980’s, a generous $5 million donation from the Holiday Corporation and William Harrah’s widow lead to the renaming of the school to honor the iconic Nevada casino owner.  The 1990’s saw the addition of a Doctoral program and the creation of the International Gaming Institute.

Program Offerings

Students can choose from a wide variety of fields of study.  Program offerings include lodging management, gaming management, food and beverage management, recreation management,  private and public club management, entertainment management, professional golf management, meeting and convention management, or timeshare management. Administrators like to call Las Vegas a “living laboratory”, and with more than 125,000 hotel rooms and some of the greatest entertainment in the world the phrase makes perfect sense.  Consequently, internships play a major role in the completion of each program. 

Plans for the Future

The school continues to grow in popularity.  Today, the Harrah College of Hotel Administration has nearly 2,500 students enrolled from 42 states and 39 countries.  A major future plan for the school is INNovation Village, which will consist of an on-campus hotel, shops, a restaurant, a conference center, and an academic building.  Most institutions of higher learning would be weary of a campus located near so many casinos, but for UNLV it’s the school’s location that makes it possible for the world-renowned program to exist.  While there are other college and universities that offer these majors, none are able to offer the real-world learning experiences that UNLV can. 

A 52-year old gambler who reportedly gambled over five million dollars a day, and lost a grand total of $127 million dollars in one year, has taken civil action against a popular Las Vegas casino. According to the gambler, Terrance Watanabe, the casino is to blame for his incredible loss, and he wants his money back.

How Terrance Watanabe Got Here

Terrance Watanabe made a fortune running an import company that sold party favors started by his father. Around 2000, Watanabe started frequenting Las Vegas casinos, particularly ones owned by Harris, aimed at spending that fortune. Watanabe didn’t start out small, after all the man had a fortune to spend, but Harris employees say his gambling didn’t become a problem until almost five years later.

In 2005, Watanabe had developed a heavy drinking problem. He was also visiting the casinos more frequently. Some reports say he was gambling on five million or more a day.

Two years later, in 2007, Harris casino employees took a keen interest in Watanabe. Steve Wynn personally reviewed the gambler’s history and spoke to him about what Wynn considered to be a serious gambling addiction. Watanabe was eventually banned from the casino.

Las Vegas’ Big Loser

Between 2000 and 2007 Terrance Watanabe lost a good deal of money. In fact, his losses added up to 5.6% of Harris total revenue in one year. That year marked the longest loosing streak in Las Vegas history. Watanabe lost a total of $127 million dollars in the Caesars Palace and Rio casinos.

Unfortunately, most of those losses were on credit given by Harris; a credit that Watanabe didn’t repay. In April of 2007 he was charged with four counts of intent to steal when he failed to repay Harris a $14 million dollar debt. He faces up to 28 years in prison if he is convicted of the charges.

Terrance Watanabe Sues Las Vegas

In lieu of just repaying Harris, Watanabe elected to file a civil suit instead. According to him, employees of the casino alternated between feeding him pain medication and alcohol in an attempt to keep him gambling.

Pierce O’Donnell, Watanabe’s lawyer, told reporters that Harris “preyed” on Watanabe’s drinking and gambling addiction, and that the failed to follow protocol. (In Las Vegas, a casino is supposed to ask anyone who has had too much to drink to stop gambling.) However, he admits claims that Watanabe knew he had a problem when he lost the $127 million.

The civil suit has caused the Nevada gaming commission to open an investigation in to Harris’ treatment policies.

The results of the civil case may not be in for months. In the meantime, Watanabe’s debt is on hold and he is still banned from the casino.