Vol. 5, No. 1, January 2009

Vol. 5, No. 1,  January 2009


Eye Toward The Future

By Casino Connection Staff   Mon, Dec 22, 2008

Eye Toward The Future
In these current lean times, executive-level leadership is more important than ever. Casinos are trying to deliver the same level of service they always do, but reduced revenues mean they have to do it with a smaller workforce.
Making sure that everyone is pulling together to accomplish the same goals, keeping morale up and keeping the ship moving in the right direction is more important now than it is when things are good. Right now, there is little room for error.
And it was with that in mind that we selected these leaders for our annual compilation of People to Watch. Each one of them has the experience, the skills and the know-how needed to guide their casino, their company or their constituents through the rough waters expected in 2009. And, because challenging times tend to separate those who can from those who can’t, the actions that these people take throughout 2009 could be setting the plate for bigger things in the years ahead. Whether it be increased political ambitions, growing a gaming company or building on the history of a single casino, they are all setting the groundwork right now for the great things we expect to see from them in the future.
With that in mind, we present our list of People to Watch for 2009.

Andrew Pascal
President and COO, Wynn Las Vegas & Encore

Former Wynn executives are admired throughout the industry for their operational savvy, their entreprenuerialship and their ability to turn on a dime--to change quickly in response to market conditions.
Andrew Pascal, the president and COO of Wynn Las Vegas and Encore, is admired within the organization for those skills, but much of that was learned while he was away from the Wynn organization.
As a casino gaming “brat”—someone who was raised around gambling—Pascal had something of a head start.
“I grew up around it,” he said. “My dad was a bit of a gambler while I was growing up, so it held a bit of a mystique.”
During the summer breaks from school, he held a variety of jobs at the Golden Nugget, a casino coincidentally owned by his uncle, Steve Wynn (Pascal is Elaine Wynn’s nephew).
“I was exposed to so many different aspects of the resort,” he said. “It was very dynamic, and I learned so much. It didn’t take me long to realize that these resorts have so many different kinds of businesses under one roof. If you weren’t really clear about what you wanted to do professionally, it seemed like a good place to figure it out.”
When Wynn opened the Mirage, Pascal was with him, eventually rising to lead the slot department.
“Steve wanted us to focus more on the content,” he explained. “He’s known for building these incredibly fanciful resorts, but at the end of the day, people spend the time playing these games, and for the most part, they weren’t really evolving all that much.
“We created a whole suite of products that were unique to us, first at the Golden Nugget and later at the Mirage. The idea was to develop new, fun games that were unique to us and couldn’t be found anywhere else, and people would come back to us to play them. And if they happened to wander in from the joint across the street, they’d see something they had never seen before and they’d stay a while.”
Through this involvement, Pascal was exposed to the many slot manufacturers at the time and found them wanting. He met a group of technology experts from the San Francisco area and formed Silicon Gaming, a company that would revolutionize the slot industry. Whether it is the bold video graphics, the streamlined slot cabinets, really unique games or even server-based gaming, Silicon Gaming was truly ahead of its time. Today, every slot manufacturer applies and uses the innovations that were first found in Silicon Gaming products.
“It was an exciting time,” Pascal said. “It was an opportunity for me to get out on my own and learn a different set of lessons. It helped to dream big.”
Pascal said wile the company was dynamic and creative, the challenge was to get his partners to understand the consumer.
“With an entertainment-based product, you’re appealing to someone on an emotional level,” he said. “While we built a platform and a suite of games that was clearly revolutionary for our industry, we got a bit distracted initially by the technology and the capabilities of the platform we had created, and we lost sight of how to leverage those things to really enhance the gambling proposition.
“We ultimately figured that out, but it was a little too late.”
While Silicon Gaming was eventually swallowed up by slot giant IGT, Pascal says he learned a lot from that experience, and a subsequent position with IGT’s groundbreaking WagerWorks division, which is today one of the top providers of internet games in the world.
“The experience of being an entrepreneur, coming up with plans and strategies and being able to articulate that to your investors, your customers and your employees…that alone was invaluable,” he said. “I still apply those lessons today in my role at Wynn.”
Since he was appointed to lead Wynn Las Vegas more than three years ago, Pascal has been able to apply the principles he learned at Silicon Gaming and IGT, coupled with his experience at Mirage Resorts and Wynn Resorts. And he knows, in the end, it’s the quality of the experience, driven by the commitment and dedication of the employees, that makes all the difference.
“Everyone is trying to do the same thing,” he noted, “but we’ve been fortunate that we’ve been acknowledged by groups like AAA, Mobil and Michelin, and we take a lot of pride in that. At the same time, we don’t get overly obsessed with those things, because they’re just a byproduct of focusing on doing the right thing. First and foremost, it’s the guest.”
Again, it sounds like the lip service mouthed by all other casino resorts, from the most economical to the most expensive. But Pascal said Wynn does it different.
“It’s about a lot of little decisions,” he said. “But it all starts with how our employees feel and how they react the first time they’re standing in front of a guest. If they’re checking them in, serving them in a restaurant, dealing them a game in the casino…what we try to do is empower them. We want them to focus on the guest; to give them a sense of what we are and create a level of warmth that you may not find to such a great extent anywhere else. Hopefully, it gives the guest a sense that we really care; we appreciate that they’re here, and we want to make sure they have nothing less than a flawless experience while they are here.”
Pascal said his experience begins and ends with the lessons taught by the master, Steve Wynn.
“He involves you in the process, whether he is designing a restaurant or a room or a resort, or re-architecting a casino division,” he said. “He’s very engaging; he solicits your ideas and opinions. Just by observing him asking the questions as he collects the information, then applies his own experience and comes up with a solution, that we all then vet, it’s a fascinating, stimulating process. It’s a style that I then try to apply as I engage my team. I want to make sure that they feel as connected and involved in that process as I feel in the design process. He’s given me a lot of latitude to approach managing this resort in a way that fits me and my style.”
That level of entrepreneurial direction is what sets Wynn Las Vegas and Encore apart from all the other resorts on the Las Vegas Strip, according to Pascal.
“Too often, people who work in big companies or big resorts think that all they have to do is to execute their job function—deliver the good meal or execute the sequence of service in the front of the house,” he said. “If they start thinking about who we are or who the customers are, it gives them a slightly different point of view. That makes them value the customer more, which means they put more of an effort into establishing the relationship with that customer. It helps them really understand that customer or how to attract more of them. That’s what’s going to drive the business.”
—Roger Gros


Richard Brown
President and Chief Executive Officer, Planet Hollywood Worldwide Resorts
After eight years at American Casino and Entertainment Properties, where the focus was on operations and cost containment, Richard Brown is now charged with building a brand that is recognized worldwide. When billionaire owner Carl Icahn sold American Casino (consisting of the Stratosphere and the two Arizona Charlie’s in Las Vegas, along with the Aquarius in Laughlin) to Goldman Sachs early in 2008, Brown became a free agent. He was introduced to Planet Hollywood founder Robert Earl, and the rest is history. Planet Hollywood is a perfect fit for Brown. His expertise, honed by years at Harrah’s and ACEP, is marketing. So expanding a powerful brand should fall right into his wheelhouse. It all started in Vegas, he said.
“If you look at what we’ve done on the Las Vegas Strip, the brand standards that have been developed here are outstanding, especially considering the previous property here,” he said. “I’ve brought numerous prospective clients here, and they are totally amazed at the transformation. Robert and Mike Mecca and their team have really set the standard, for me, to take and grow on a worldwide basis.”
The previous history with the Planet Hollywood restaurants, which all closed except for the one at the Forum Shops in Caesars Palace, doesn’t dissuade Brown from the brand.
“As a brand, it is a broad-based brand,” he explained. “When you consider how Robert uses celebrities--everyone likes celebrities and identifies with them. Whether you’re 21 or 71, entertainment appeals to all of us. That is a great mass appeal. Even in international markets, Hollywood is extremely appealing.”
Operations is only one leg of the stool that is the plan for the expansion of Planet Hollywood.
“Some potential clients are looking to license the brand,” he said. “Many of those prospective clients are in markets where competition is tough, and they need a little bit more to compete effectively.
“Another way we’re going to expand the brand is through licensing and management. A location that doesn’t have a solid management team in place can come to us for help in both branding and management. Thirdly, we will be an acquirer of properties in this environment. We are close on a few things, either wholly buying a property or, in some cases, a joint venture partnership.”
In that last category, Brown has his eyes on properties currently considered second-tier by some of the major gaming companies.
“I am in contact with all of the major operators in the business,” he said. “Due to their debt structure, they’re probably going to have to eliminate some of their non-strategic assets. We want to be aggressive about pursuing those assets, because they may fit into our business plan very well.”
Brown has simple goals for Planet Hollywood Resorts in the next five years.
“I would like to see our brand in the major markets,” he said, “some appropriate Native American markets and internationally in major destination resorts. We want to be in places where we get noticed and where our essence plays very strongly.”
—Roger Gros


Terry Jicinsky
Senior Vice President of Marketing, Las Vegas Convention and Visitors Authority
Wisconsin native Terry Jicinsky thought he would attend school in Las Vegas for a few years before moving on to become a professor. More than 20 years later, LVCVA’s marketing master has transformed the way people view Las Vegas, perhaps despite his best laid plans.
As the senior vice president for the LVCVA, Jicinsky supervises the Visitors Authority’s account with R&R Partners, the group’s advertising agency of record. The creative team at R&R spends every day crafting new marketing campaigns for the LVCVA, and Jicinsky approves the final products.
Jicinsky has worked for the LVCVA for 16 years, and for him, marketing Las Vegas is simply letting the world know what the city has to offer.
“I’m marketing something that’s uniquely positioned, and it’s so varied,” he said. “There’s just so much to do in Las Vegas, and there’s something for everyone.”
The economic downturn has required more creativity on the part of the marketing team at the LVCVA. Last year, the group pushed an immediacy campaign, with commercials urging visitors to visit Vegas “right now.” There was also a huge step forward in the LVCVA’s online presence with Visitlasvegas.com, a website spotlighting resort and nightlife offerings in the city.
This year, Jicinsky and his partners at R&R are crafting a campaign based on a recent pilgrimage to Las Vegas made by half of the residents in Cranfills Gap, Texas.
“The Vegas-bound campaign is really all about proving or showing to the visitor that it’s still a lot of fun to be here; there are still a lot of things going on,” Jicinsky said.
In February, the LVCVA will be partnering with Sports Illustrated for a TBA event connected with the magazine’s annual swimsuit issue. The group will also be teaming up with Bon Appetit magazine to host “Vegas Uncork’d,” a food-and-wine festival Jicinsky hopes will bring refined tastes to Sin City.
“We’re looking for partners like that, whether it be Bon Appetit on the food side or Sports Illustrated on the sports side, that we can tie into their audience and put a Las Vegas message in front of people who like to do what we have to offer in Las Vegas.”
Each event and each campaign is part of Jicinsky’s strategy to draw visitors to Vegas not in spite of tough times, but because of them. Las Vegas is an escape, and in 2009, Jicinsky intends to showcase the value and excitement of Sin City to the world.
— Caitlin McGarry



Marilyn Winn
Regional President, Rio, Paris and Bally’s, Harrah’s Entertainment
A cursory glance at casino executives throughout gaming suggests that it is a male-dominated industry. The ratio is changing, however, and there are a growing number of women holding executive-level positions in Las Vegas and throughout the world. It is something that Marilyn Winn, regional president for Harrah’s Entertainment in charge of Rio, Paris and Bally’s in Las Vegas, attributes to nothing more than the commitment necessary to climb the ranks in the industry.
“I don’t put much into the glass ceiling,” she said. “You pretty much have to marry this business. Now we’re finding women who were willing to pay their dues just like the men have, but the men typically had a wife at home watching the kids. It is something that will ebb and flow.”
Winn got her start in the gaming industry in 1988 after responding to an ad for a human resources position at what was then the Holiday Casino, now Harrah’s Las Vegas. From that point, her career was a steady rise to the top, including executive positions in both human resources and operations. She has led the corporate human resources team for Harrah’s Entertainment, as well as a number of properties, including Harrah’s Shreveport, Harrah’s Las Vegas and Rio. She currently oversees Rio, Paris Las Vegas and Bally’s.
“The greatest challenge as well as the greatest responsibility is ensuring that the folks who report to me have what we’re looking for,” she said. “If you have the right management team, it makes three properties or 10 properties so much easier; if you have the wrong team, it makes one property a nightmare.”
Like so many other operators, Winn is dealing with the economic slowdown. While some companies are looking to cut corners or lay low and ride out the storm, that is not an approach Harrah’s is willing to accept.
Instead, Winn said she is digging into the player and guest data the company has compiled through its Total Rewards program. An aggressive direct mail campaign offering attractive room rates as well as bonuses like dining and entertainment deals is part of the strategy to bring people to Las Vegas. The next step is keeping them at Harrah’s properties.
Research from the Las Vegas Convention and Visitors Authority shows that the average visitor will go to five different casinos while they are in the city. Harrah’s has seven properties in the market, so when properly handled, the customers never have to go to a competitor’s property. It is a bigger challenge with the Rio, which is located off the Strip, but a free shuttle to Harrah’s, Caesars Palace and to the Paris and Bally’s helps.
“[Gaming is] the most discretionary of all purchases, so when customers are finding their wallets really crunched, we’re probably the last guy they are thinking about going to buy something,” Winn said. “The key is we want to bring in those customers, but we want them to come with money.”
The other component of the economic challenge is controlling costs at the three properties. There are only so many staff cuts that can be made before customer service suffers, and the protracted nature of the recession has made voluntary reductions less attractive to the company’s workforce. While attrition has afforded for some less painful decisions about staff levels, it puts more stress on the workers who remain. Winn said it is important to let people know that the company knows they are working harder and that it is appreciated.
The slate of new projects scheduled to open along the Strip also presents a challenge.
“Talent retention will be a challenge as different companies grow,” she said. “If they pick off some of our talent, that will be challenging.
“There are a lot of reasons why someone might leave a position, and we hope the relationship we have is strong enough to keep them here and to forgo those opportunities as long as there are growth opportunities within the company.”
—Greg Jones



Josh Hirshberg
Chief Financial Officer, Boyd Gaming
When Josh Hirshberg joined Boyd Gaming one year ago, he was moving into a position and a discipline that has long produced leaders in the company.
After Ellis Landau held down the job of CFO for more than a decade, Paul Chakmak, now COO, took the position. Keith Smith, Boyd president, also came from the financial sector of the business. So Hirshberg said he has plenty of help. And he’s going to need it.
“I’ve been CFO at other companies,” Hirshberg said, “but we didn’t face the kinds of issues we face today. This is an entirely different environment than anyone has ever encountered. Everything you do takes on added significance.”
Almost immediately upon joining the company, Hirshberg had to deal with the freezing of the credit markets and the effect it was having on what will become Boyd Gaming’s flagship property, Echelon, which is under construction on the site of the old Stardust on the Las Vegas Strip. Now that the project has been halted for at least a year, Hirshberg said the company is considering how to best go forward. And he’s evaluating the new paradigm of gaming companies: how they are valued and how return on investment is calculated.
“That will influence what we build and how we build it,” he said. “Under one capital structure, getting a certain return is acceptable. Under another structure, it may not be. But it’s not like you can wring extra dollars out of a project. We have to figure out how to finance it or change the strategy or focus toward a different customer segment.”
One of the problems with Echelon was the difficulty Boyd’s partners had in obtaining financing for the other elements of the project—hotels and retail space. Hirshberg said the year delay will give them all a chance to regroup.
“From the partners’ perspective, we have great relationships with them,” he said. “But like us, they want to step back and take a look at what the world is going to look like a year from now or whenever the project is re-started. These were the guys we wanted to do business with. They’re still interested in the project. We just have to figure out how it’s going to work for everybody.”
Hirshberg has spent much of the last year understanding how to cut costs and create efficiencies without impacting operations or customer service. With Boyd Gaming, he said, it’s not as difficult as it might have been at other companies.
“We identified pretty early that the business in ’08 wasn’t going to be as good as it was in ’07,” he explained. “We started to see weakness and pressures in certain areas early on. And that was combined with the historical background of this company always being focused on cost and efficiencies. So we were able to be very proactive. We knew what we needed to do because this company has been doing it all along. We’ve been able to continue to manage our costs to match the level of revenues we’ve seen. But ’09 is going to be very interesting.”
—Roger Gros


Kevin Kelley

Executive Vice President and Chief Operating Officer, Station Casinos
Casino executives who have worked their way up from entry-level positions always have interesting stories. During their ascension, they gain valuable insight into all aspects of the casino operation, and have first-hand experience of what it is like to be on the front lines to add to their experience in the executive offices. It seems to make for a well-rounded leader.
That is exactly the case with Kevin Kelley, executive vice president and COO of Station Casinos. He got his start in the gaming industry in 1973 as a pool boy at the Flamingo, where, over a five-year period, he also worked as a busboy, kitchen worker and valet attendant. He fell in love with the gaming industry immediately upon moving to Las Vegas from southern California.
“Even though through my climbing the ranks I worked every crummy job you can imagine, I did it with a smile on my face. This was a means to an end and one more step in the evolutionary process to ultimately get where I wanted to be,” he said.
That evolutionary process took him from the entry-level positions at the Flamingo to marketing positions at the Las Vegas Hilton and Mirage Resorts. He worked for Station Casinos as director of development and was promoted to president of westside operations for Station before leaving in 2003 to serve as president and COO of the Hard Rock. He left that position to oversee Macau operations for Las Vegas Sands—including the opening of the Venetian in Macau—and then returned to Station Casinos in his current position in early 2008.
With a working knowledge of all operational aspects, he was happy to return to Station Casinos. The experience was necessary, he explained, because the company requires its executives to understand all details of the business. He was also happy with the corporate culture the company embodies, saying it feels like a favorite pair of blue jeans.
There were some significant changes at Station during the time he was away. The most notable was that the company went private in 2006. It might not have made anything easier, but he said going private allows him to focus more on the long-term value of the company versus quarterly performance.
The other obvious and significant change is that the troubled national economy is having some dramatic effects on Las Vegas. One of the most difficult decisions he had to make was announced in early December when the company decided to suspend matching contributions to employees’ 401(k) plans. It ultimately came down to a decision between suspending the contributions or eliminating jobs, and it is a decision he said the company will reverse as soon as its financial situation improves and the economy stabilizes.
In the meantime, he is focusing on an aggressive marketing strategy to improve the company’s market share.
“Your guests are everything and you do what is right for them, whether it is good times or bad times,” he said. “It is a lot easier to keep your customers happy now than to try and win them back when times are good. It becomes a very expensive proposition then.”
While he joked that aspirin is the key to coping with the current economic situation, Kelley sees a number of signs of hope in Las Vegas—perhaps a silver lining to the depressed local economy. Housing prices are lower, and the cost of entry into the city is not as prohibitive as it was during the peak in 2005 or 2006.
“I think with the major projects like CityCenter and Fontainebleau and Encore coming online and creating more jobs, people are going to be able to assimilate into the Valley even faster and more affordably,” he said. “That is a good thing for Station Casinos.”
—Greg Jones


Derek Stevens
Co-owner, Golden Gate Casino
Downtown Las Vegas is enjoying something of a resurgence these days. While overall revenue for the entire Fremont Street gaming area may be down like it is in every other market in Nevada, there are some individual properties where owners are enjoying the benefits of capital reinvestment.
The Golden Gate Casino and Hotel is one of those properties, in large part because of a deal struck in 2006 and finalized in March of 2008 in which casino owner Mark Brandenburg took on Derek Stevens as a co-owner of the property.
The deal provided necessary funding to undertake a property-wide renovation project that brought the property up to modern standards, while maintaining its charm and character.
“The challenge was making sure we didn’t lose the vintage appeal,” Stevens said. “You can still tell it is the oldest hotel in Las Vegas.”
The other challenge was maintaining revenue numbers during the renovation process, something Stevens said was completed successfully. Overall, the property increased its revenue despite a number of months when a significant portion of the hotel inventory was offline.
“We were able to run the revenues up, but the majority of the hotel was down from May through November,” Stevens said. “We’ll have all the rooms open next year so we won’t have to worry about that.”
In addition to completing renovation projects, Stevens is excited about how the operators in Downtown Las Vegas are coming together through the Fremont Street Experience to market the area. The new Viva Vision shows on the canopy and the sense of everyone working together is very exciting.
“There is a lot more working together than competing,” he said. “I think the overall goal of getting people Downtown overrides the more day-to-day competitive issues that come up.”
Stevens has an additional way to driving traffic to the property and, as a result, Downtown Las Vegas. He has been able to coordinate some cross-promotional campaigns with the Golden Gate and the Las Vegas 51s, which is held by the Stevens Family Trust.
Last year, one of the most popular promotions involved giving away free shrimp cocktails—a legendary item at the Golden Gate—to ticket holders for any game in which the 51s scored 10 or more runs. This year, with the team being affiliated with the Toronto Blue Jays of the American League, instead of the Los Angeles Dodgers of the National League, the designated hitter rule will be in effect for all home games. As a result, Stevens expects to be giving away more shrimp cocktails.
Other promotions scheduled for the baseball team in 2009 include a $1 menu Monday—$1 for things like hot dogs, peanuts, popcorn and sodas—and the ever popular $1 beer nights on Thursdays. One more note for the new year: those brutal summer Sunday afternoon games are done. All Sunday games after June will now be played at night.
With the Golden Gate now firing on all cylinders and the Las Vegas 51s starting a new contract with a new team (plus the cross-promotions), Stevens is pretty confident moving into 2009, despite the economic conditions.
“Overall, the economy going into 2009 is far different from going into 2008,” Stevens said. “I think there is a higher degree of uncertainty, but as far as operations of the hotel, I feel a lot better going into ’09 than I did going into ’08 because we have a lot of our projects completed.”
—Greg Jones


Cynthia Kaiser-Murphy
President, New York-New York Hotel & Casino
During her time as vice president of human resources for MGM Mirage, Cynthia Kaiser-Murphy applied her years of experience acquired both during her education at University of Nevada-Las Vegas and at her first job with the Las Vegas Hilton.
Her top-down knowledge of gaming is an asset in her new position as president of New York-New York, a role she took on early last year. Her first year as president has been an interesting one—the resort recently finished a major renovation, which was master-planned before Kaiser-Murphy joined the New York-New York team.
“The construction has been going on all year, and that’s been very challenging for the employees and the guests because it’s a rather boutique-sized property. So when you have jackhammering going on, you can hear it everywhere.”
One of Kaiser-Murphy’s many responsibilities during the construction was to keep employee morale high.
“The most important thing that you can do is constantly reinforce the relationship that employees have with their manager and communicate with them as much as possible, and be honest about what’s going on. The construction was very, very disruptive; it was very, very difficult.”
With an emphasis on communication, the team at New York-New York has emerged from the renovation more unified than ever, prepared to present the classic property as a brand new resort.
While many resorts are giving themselves makeovers in order to de-theme, Kaiser-Murphy said the transformation is intended to modernize the New York-New York while keeping with the original spirit behind the resort.
“We have no interest in getting away from our theme,” she said. “We wanted to update it, make it a bit more contemporary, more appealing.”
Kaiser-Murphy intends to market the renovation as a new reason to visit her resort, along with iconic attractions like the roller coaster and Cirque du Soleil’s Zumanity show.
“That’ll be our management team’s pursuit for next year, is to really maximize those opportunities. Tell everybody we have a new casino, which is a big deal.”
—Caitlin McGarry


Rory Reid
Clark County Commission Chairman
Election season ended mere months ago, leaving politicians to regroup and focus their attentions on the myriad of problems facing the United States. But some are already looking ahead to 2010, an election year during which many governors and congressional members will face reelection.
Clark County Commission Chairman Rory Reid is aiming to solve the present crises in Southern Nevada while also looking to the future—a future that could include a run for governor.
Reid, the son of longtime Nevada Senator Harry Reid, makes no qualms about his intentions.
“I don’t think that there’s any great secret anymore about what I’m looking at doing. I think we just got done with an election and people are tired of campaigns at this point, so I’m not going to make any formal announcement, but I’m certainly interested in being governor… Stay tuned.”
Reid has been testing the waters to find out what people want to see in a governor, but he also remains focused on the hardships Nevadans are facing. The state has one of the highest foreclosure rates in the country, as well as a faltering gaming industry and projected budget shortfalls for the next few years. Reid and his fellow commissioners are looking at ways to address the economic issues plaguing the valley.
“We’re doing what every Nevada family is doing—we’re looking at our budget,” he said. “We’re deciding what’s necessary and what’s not quite as important, and we’re trying to get through it. I think in the short-term we have a lot to do just to continue to provide the services that people expect from their government. I think the budget’s going to our focus in the short-term.”
As a Las Vegas native, Reid is well-versed in Las Vegas politics, and has seen firsthand the changes the city has experienced. Before the economic crisis, his biggest concern as a commissioner was how to effectively deal with the county’s growth. Now there are bigger problems.
“When you grow as quickly as this community has, there’s all kinds of impacts on your transportation system, your healthcare delivery system, the quality of your air, the water—it had to do with everything,” he said. “This economy has changed and what we’re trying to do now has nothing to do with growth, it has to do with the opposite. We have an economic downturn that’s significant, unprecedented and we’re trying to deal with it. That is omnipresent at the moment.”
—Caitlin McGarry


Scott Butera
President, Tropicana Entertainment
One of the big stories of 2007 was the yanking of the New Jersey casino license for Tropicana Entertainment, the casino division of Columbia Sussex. The state Casino Control Commission found that Chairman Bill Yung disregarded several regulations and failed to maintain a “first-class resort” as stipulated in the Casino Control Act. The Atlantic City Tropicana was put up for sale (yet to be consummated one year later), and the company scrambled to survive as Indiana also forced a yet-to-be-consummated sale of the company’s Evansville property. The board brought in turnaround artist Scott Butera, who helped the Trump Organization emerge from bankruptcy in 2005. Butera immediately went to work purging the company of the offenders, and the Yung family was ousted.
Now that it appears the Atlantic City sale will be completed in early 2009—Tropicana will probably not regain control of the property—the company will concentrate on its Las Vegas flagship. Butera is confident that the Tropicana will survive and even thrive. He’s brought in gaming veteran Bobby Yee to run the property, while Butera concentrates on the overall health of the company.
Butera said that the turnaround on the Strip starts with the employees.
“Our employees are our greatest asset,” he said. “They’re the front line with our customers, and I really view employees and customers as almost one and the same. Clearly your employees need to be energized and enthusiastic and respected in order for your operations to work correctly.”
Settling a complicated contract with the Culinary Union was Butera’s first order of business.
“I think we both came in very open-minded,” he said. “They worked with us in helping us on some things we wanted to accomplish so we could enhance our operations. It was a very, very productive experience. And I can tell you it’s been very successful. The effect on the labor force has been tremendous. We’ve seen a force that went from being somewhat unmotivated and depressed to being incredibly enthusiastic and proactive, so we’re very pleased.”
Butera has plans to re-invigorate the entire property, an icon on the Las Vegas Strip. While the company at one time had big plans to convert the 34 acres into a CityCenter-like development, his plans are more modest now.
“We’re making investments in this property with a five- to seven-year horizon,” he explains. “We’re going to take a look at what happens in Las Vegas. Obviously there’s a lot of new product that’s coming online. I think much of what’s being developed is going to be spectacular, but it’s very much at the luxury segment. I think there’s an opportunity at the value segment. We’re going to be investing to create a great, value-oriented experience on the Strip for people who want something that’s affordable; that reminds them a little bit of what the ‘50s, ‘60s and ‘70s used to look like; that caters more to gaming but still has great rooms and food and beverage. We’re really excited about it. We think the Tropicana has a great home over the next four to five years, because we can go out and get a customer that really has been displaced by this market.”
Tropicana also owns four other Nevada properties: two in Laughlin and two in Lake Tahoe. Butera thinks the company can leverage this network with customers.
“If we have customers from Las Vegas that want to go to Laughlin or Tahoe, or vice versa, we want to start doing that, and moving our customers around all of our properties, so I think they’ll get the benefit of that. We feel really good about the Laughlin and the Tahoe markets.”
—Patrick Roberts


Max Baer, Jr
Developer, Beverly Hillbillies Casino
For more than two decades, Max Baer Jr. has been looking to get into the gaming industry. The actor who played Jethro Bodine on the Beverly Hillbillies looked at sites throughout Nevada where he would build his casino, but each time he took a step forward, it seemed he was taking two steps back.
Since sublicensing the rights to the show from CBS in 1991, he has looked at sites in Lake Tahoe, Reno, South Carson City, Las Vegas, Stateline and Sparks without any luck. Finally, in 2007 he made his most significant steps forward in Douglas County, where he was able to get the necessary zoning permits and variances to make Jethro’s Beverly Hillbillies Mansion and Casino a reality.
Again, it was not without some struggle. While the majority of the community seems to like the idea of a new destination casino, they were not impressed with some design aspects Baer was proposing. Specifically, they said the 200-foot mock oil derrick shooting 30-foot flames that Baer proposed would be an eyesore in scenic Northern Nevada.
So Baer had to go back to the drawing board a number of times to redesign what was supposed to be an integral part of the project. First, he decided to drop the shooting flames but he still couldn’t get a variance. Then he took 50 feet off the height of the tower, but the proposal was denied again. He spent a year drafting ideas before the Douglas County Planning Commission finally approved a 90-foot tower on Baer’s 71st birthday.
With that approval, Baer now has everything he needs to move ahead with the $150 million project, which will feature a five-story, 240-room hotel and a 40,000-square-foot casino in its first phase.
For Baer, the son of the one-time heavyweight boxing champion of the world, the adversity was nothing more than a minor setback. He never thought of abandoning his dream.
“There is nothing wrong in getting knocked down,” he said. “But, there’s something drastically wrong if you don’t have the balls to get back up.”
Obviously, Baer has the fortitude to keep pushing forward despite multiple obstacles along the way. Now that he can start putting together plans for construction, Baer is in the position to bring some much needed jobs, increased revenue and more tourists near Douglas County and Northern Nevada.
His orig

Fit And In Shape

By Caitlin McGarry   Tue, Dec 23, 2008

Fit And In Shape
When a new year begins, people all over the world make a list of goals they want to achieve over the next 12 months. These lists often include joining a book club, learning how to dance, asking for a promotion and, of course, the top two resolutions: sticking to a diet and going to the gym.
Eating healthily and exercising are great for your body, but many people approach these two facets of life in unhealthy ways. First, not many people can manage to stick to a New Year’s resolution. Things come up and the new year’s goals are forgotten, pushed to the next year. Secondly, while many diets have been quite successful for many people, recent studies have shown that most people who lose a great deal of weight often regain those pounds (and more) after five years.
Finding a healthy size and becoming a stronger, more confident version of yourself may in fact be less difficult than eliminating white foods or eating only grapefruit.
To Diet or Not to Diet
Everyone has at least one friend or family member who is always on a diet. Sometimes it’s all protein, sometimes only foods that begin with the letter ‘B.’ Fad diets are typically unsustainable over the long term; if you’re looking to drop five pounds to fit into a new dress or suit, they may work, but true health often comes from changing the way you feel rather than the way you look.
Americans are people who are on the go—school, work, parties, non-stop. That means we eat quickly and we usually eat on the way to our destinations. This has fostered a lack of reverence for food, as opposed to other cultures that make it a point to enjoy small gourmet meals with friends and family on a daily basis.
So the first step in becoming a newer, healthier you is to slow down and enjoy food for what it is: nourishment for your body. After a few weeks of paying attention to your body (particularly your stomach), you will begin to understand what your body needs to sustain itself. It usually does not need greasy fast food or sugary drinks.
Another important part of enjoying food as nourishment is to eat intuitively. This means eating when you’re hungry, and only eating as much food as you need to feel satiated. Many people eat thoughtlessly, which encourages overindulgence—suddenly you’ve eaten an entire entrée and you’re almost too full to move, which can be unhealthy if done too often. If you’re going out to dinner and know that you’ll be too caught up in the conversation to stop eating when you’re full, order a half-sized portion.
Eating until you’re overly full is one thing, but drinking alcohol can cause the same effect. People often forget about liquid calories when they order several cocktails during a night out, but most mixers are laden with artificial sweeteners like high fructose corn syrup, and all of those drinks add up. If you are a frequent partier, booze can pack on the pounds.
And throughout your efforts to be healthy, remember that no one is perfect. If you indulge every now and then in unhealthy eating, it won’t kill you.
Working Out and Up
Mireille Guiliano, author of the bestselling guide French Women Don’t Get Fat: The Secret of Eating for Pleasure, states that French people don’t use gyms, eat deliciously rich food and are some of the healthiest people in the world. That may or may not be true, but one important variable to examine when comparing France to the United States is the structure of communities in each country. Most French cities are centralized with efficient public transportation, as opposed to the suburban sprawl and slow buses in many U.S. cities. People in small French towns are able to walk to work, walk to the grocery store to pick up fresh ingredients for dinner after work, then walk home. Is it any wonder why French people allegedly never gain weight?
For better or worse, most U.S. cities are not designed to encourage walking. America fosters a car culture. So how do Americans get exercise? For most, the answer is their local gym. However, few actually make it to the gym on a regular basis.
Changing the way you view food may be easy, but making time to exercise is difficult. Figure out blocks of time that will be most convenient for you: before work, after work, only on weekends, etc. Then find a gym that will accommodate those times. A lot of gyms have flexible hours to work with many clients’ schedules, so this part shouldn’t be too hard.
If you have a specific body part you want to focus on toning, most gym equipment is labeled with the muscle groups each machine strengthens, so this is a good guide. For specifics, consult one of the gym’s personal trainers.
If you just want a good, all-around workout, movement in general does the trick. Walking, running, lifting weights—it’s all good, as long as you feel your body stretching and being active. If basic exercise isn’t motivating you, look into your gym’s classes. Hip-hop dance classes, water aerobics and yoga all help you become more fit.
For those who can’t afford a gym membership, try to work out a bit closer to home. Many apartment complexes have small workout rooms in the main office, and even a brisk walk around the neighborhood is better than nothing.
And if you live close enough to walk to work or ride a bike, think about doing so. Not only will trips to work be all the exercise you could ever need, but you will also be reducing your carbon footprint.
In the end, don’t think of eating or exercising as a competition. This is your life, and the most important thing in it is your health.

Second Act

By Roger Gros   Tue, Dec 23, 2008

Second Act
With his passion for development, there is no project that Wynn approaches in such a pedestrian way, and Encore is truly the next step up for Wynn Resorts.
“Steve feels that it’s his best work,” said Encore and Wynn Las Vegas President and COO Andrew Pascal. “And I can’t disagree with him. The place is spectacular, and it makes these two properties something very special.”
The most striking element of Encore has to be the natural light that the design has enabled to reach almost all corners of the property. Few other properties have harnessed the most abundant natural resource in Las Vegas—sunlight—but Encore has done just that.
The promenade between Wynn and Encore is bathed in natural light, let in by nearly translucent German glass that virtually eliminates glare day and night.
With a resort built around a pool area, nature is seemingly at your fingertips in almost every setting, from the restaurants to the spa to the nightclub. Encore will entice visitors with an experience borne of the finest island or coastal resorts in the world.
The seamless transition from Wynn Las Vegas makes the appearance of Encore almost a natural extension of one of the finest hotels in the world. But it’s not. It’s even better. The trademark butterfly announces that you’ve crossed the threshold between the two properties, with the fulcrum being the two theaters, fittingly so for an organization that prides itself on the full entertainment experience.
Rooms and More
Pascal said the “campus” of Wynn and Encore will create a very synergistic experience, starting with the more than 2,000 suites in Encore alone.
“Encore is designed to be a perfect complement to Wynn,” he said. “The room product almost interweaves with the various kinds of room products at Wynn. With 635 square feet and all the amenities in the standard room, I believe our rooms at Wynn are the nicest in the city.
“The standard suite at Encore further emphasizes the residential feel of it. It gives us more flexibility and gives us more levels of accommodation to offer our guests. It strengthens our overall property and allows us to continue to exceed our guests’ expectations.”
An additional 60,000 square feet of meeting space makes the combined MICE space at Wynn/Encore one of the most upscale in the city. While Pascal said the economy is pressuring the entire meetings-and-convention sector in Las Vegas, Encore makes the facilities offered at his properties more desirable.
“The companies looking at meetings are looking at how and where they can save money,” he explained. “There’s no question that’s impacting us and everyone else. But the business is still there. And for the companies and organizations that want to make a statement about how they value their employees and clients, we’re the logical choice.”
Great Gastronomy
Like all Steve Wynn-designed projects, Encore is a culinary tour de force. Five new restaurants, any one of which could be described as “signature” at a more traditional property, join the exemplary choices at Wynn Las Vegas.
Pascal deflects the challenge of describing the new restaurants, instead pointing to the people responsible for making the culinary decisions.
He’s very excited about Switch, where the atmosphere will completely change three times every hour.
“Switch is a very transformative experience,” he said, without revealing any of its secrets.
Conceived by Marc Poidevin, formerly executive chef of Le Cirque at the Bellagio and most recently Wynn’s executive chef of catering and special events, Switch is a a French-inspired steakhouse and seafood restaurant with an emphasis on seasonal ingredients.
“Marc’s passion, his ideas and the things he does with menus are always extraordinary,” Pascal said.
The property’s Italian offering is Sinatra, with the name used courtesy of the famous singer’s family. On display will be Sinatra’s lone Oscar, for his role in the epic From Here to Eternity. Singer Paul Anka has also loaned his Grammy award for the Sinatra classic song “My Way.”
Another name at Sinatra is the executive chef, Theo Schoenegger. Schoenegger, renowned for his creations at Patina in Los Angeles, wants to bring an aura of Tuscany to Encore. The fine-dining establishment features a chef’s table that seats up to 10 people and serves a market-driven menu.
Pascal says the intimate location is part of its aura.
“Sinatra is tucked away next to our Tower Suites hotel, and looks out onto beautiful patios with outdoor fireplaces,” he says. “It’s a stunning place.”
Mark LoRusso, known and recognized for the groundbreaking Tableau—his refined modern American restaurant located by the Tower Suites at Wynn Las Vegas—introduces Botero Steak at Encore. Named after Colombian artist Fernando Botero, LoRusso’s signature restaurant features a modern steakhouse menu in a sexy and sophisticated setting, with views of Encore’s pool. LoRusso’s partner at Botero is Las Vegas impresario Victor Drai, who also operates XS, the fantastic nightclub at Encore.
Pascal said Botero occupies a crucial position at Encore.
“Botero straddles the two pools,” he explains. “It’s all glass, with a beautiful terrace, where, when the doors are wide open when the weather is right, you lose that distinction of being inside or outside. It’s right at the border of the two properties.”
A newcomer to the Wynn family is famed Los Angeles restaurateur Jet Tila, who will operate Wazuzu, a pan-Asian bistro at Encore.
Pascal says Tila spent several days with the Wynn executives demonstrating his culinary art, and everyone was immediately taken by him.
“He’s such a charismatic guy who is incredibly passionate about his food,” Pascal said.
Tila says he hopes to take the experience to the next level.
“America’s already very accustomed to Chinese and Japanese food, so it’s time to bring in bolder flavors,” Tila said. “Indian flavors, Singaporean flavors and, of course, Thai—I think Thai has been misrepresented. I’m trying to bring it back to what it’s supposed to be.”
And for the property’s 24-hour, three-meal restaurant, Wynn will introduce Society Café Encore.
The executive chef of Society Cafe Encore, Kim Canteenwalla, will offer guests a classic American menu of old-school favorites that have been reinterpreted with a modern sensibility. Society Café Encore features satisfying food in a casual, fun and dynamic atmosphere.
The partners behind Society Café Encore are themselves stellar. In addition to Canteenwalla, his wife Elizabeth Blau, a legend in culinary marketing, is joined by nightclub executives Sean Christie, a principal in Wynn Las Vegas’ Blush, and Oliver Wharton, formerly of the Light Group.
Pascal says the unique mix of food and personalities will create a unique experience.
“These people bring a level of energy and creativity that will create great food offerings,” he said.
Blau is responsible for getting the word out about the restaurants at both properties. With a title of executive vice president of restaurant marketing and development, Blau will also be responsible for recruiting the talent for the 19 food and beverage outlets at Wynn and Encore.
The different styles and expertise of his new partners pleases Steve Wynn as well.
“I am thrilled to welcome these fine chefs to Encore,” Wynn said. “They join our impressive family of culinary talents to offer our guests an unparalleled dining experience in Las Vegas. Theo, Jet, Mark, Marc and Kim each bring an exciting and fresh approach to their restaurants, and I look forward to our guests discovering their signature styles.”

Entertaining Choices
The opening of Wynn Las Vegas saw Wynn experimenting with the future of entertainment in Las Vegas. As the man who brought Siegfried and Roy and the Cirque du Soleil shows to the Strip, Wynn encountered some interesting experiments during his first few years.
Le Reve, a Cirque-style show created by Franco Dragone, was initially panned by critics. Wynn’s choice of Avenue Q, a Broadway show peopled by puppets, was replaced after a year by the equally flawed selection of Monty Python’s Spamalot.
For Encore, Wynn has replaced Spamalot with a show by old reliable Danny Gans, whom Wynn brought to the Mirage when he owned the place.
While Pascal welcomes the arrival of Gans, he warns not to overlook Le Reve, which no longer has Dragone’s oversight. He remarks on the “ups and downs” of the show.
“It really was more downs than ups with Le Reve,” he laughed. “We didn’t get off quite to the start we had hoped for. But Le Reve is becoming one of the strongest and most popular shows in Las Vegas. It is as entertaining, interesting and captivating a show as you’ll find on the Strip. It’s really found its place now. We’re very pleased with the traction Le Reve has found and expect that it will continue to draw audiences now that we have 2,000 more rooms.”
Gans, who is reworking his former Mirage show, will give guests a great choice, added Pascal.
“Mr. Wynn obviously has a longstanding relationship with Danny,” he said. “We’ve all been huge fans of his, and he’s established himself as an entertainer with great staying power. It’s the right kind of complement to Le Reve.”
Pascal hinted at a few entertainment surprises.
“We’ll also be looking to complement Danny and do some other fun things with our entertainment program here at Encore,” he said.
During the groundbreaking ceremonies for Encore, Wynn riffed on what he expected of the poolside experience at the new property. Pascal said the original concept has changed remarkably, and not surprisingly.
“The ideas evolve a lot, as they typically do,” he wryly noted.
Two pools will serve Encore guests: the resort pool, open to everyone, and the European pool, open to only those 21 and over.
Pascal says the surrounding ambiance of the pools, bordered by several restaurants, the XS nightclub and beautiful gardens, create a truly unique atmosphere.
“We’ve integrated all these different components,” he said. “There’s a beautiful island bar, with a lounge and a small casino. Lapping around the pool area, there are two stories of cabanas. The way all these elements are focused will allow them to create a kind of energy in an environment that we think people will never want to leave.”
The XS nightclub wraps almost around the pool area, and its 40,000 square feet make it one of the largest—and undoubtedly soon-to-be most exclusive—clubs in Las Vegas.
Economic Challenges
While some of the megaresorts on the Las Vegas Strip ground to a halt when the economy started to tank, Wynn Resorts had long completed the financing for Encore, so it escaped the pressure to find additional financing in order to finish the project. Nevertheless, Encore will open during a time when Las Vegas, and particularly the Strip, is experiencing its most difficult economic times since the period immediately following September 11.
For Pascal, it’s more than just a challenge.    
“We see it as an opportunity to level our resources,” he explained. “After the economy began to slump, we reworked our forecast for a baseline level of activity just for the purpose of our planning. We wanted to be very conservative, forecasting business volumes that are substantially below where they have been for the past 18 or 24 months. We wanted to know what our staffing levels would be—by outlet, by job classification. We wanted to craft new schedules so we knew what the optimal staffing would be in order to function and deliver our experience. And then compare it with our current staffing.”
What they discovered, Pascal said, is that although Wynn Las Vegas could operate with fewer staff members, they had the opportunity to move existing employees to Encore.
“Now this is the same exercise that everyone goes through when they’re contemplating layoffs,” he said. “For us, we had the opportunity to take all of those people who were over and above that minimum threshold and transfer them into a like positions at Encore. We had the opportunity to achieve a level of efficiency that we would not have been able to achieve unless we reduced hours.”
The move allowed Wynn Resorts to stay true to its principle of valuing employees above all.
“As a company, we will not lay people off,” Pascal insisted. “That is not who we are. The thing that guides our decision-making is to maintain the stability and the health of our employee base. If we make decisions that make them uncomfortable or uncertain about their ability to earn, then that’s an unbelievably distracting situation for them to be in, and we can’t fulfill our promise to our customer because our employees will be distracted.”
Pascal said the economy only became a serious concern when business dropped more dramatically in the fall. But he said it makes no sense for the Wynn properties to deeply discount their offerings.
“While there may be fewer people who are coming to Las Vegas,” he said, “there are enough to support our campus, our two properties. We’re not the cheapest, and we never will be. That’s not who we are; that’s not how we position ourselves. For us, it’s about quality. For the more discriminating consumer, this is their place.”
Creativity is the key to bringing in customers, said Pascal, and to do that you have to know your customers and their expectations.
“What we’d rather do is talk to them about what we are and what makes us unique,” he explained. “We’d rather create a special program where, for example, they would come to meet with our director of wines, which is an excuse for us to talk about all the different restaurants. We’ll package our rooms with dining and entertainment options. But it’s not that the package price itself is discounted or any cheaper than if they were bought separately. Packages like that allow us to talk about the components of the experience that makes us different.
“We feel that we’re able to react to what’s going on in the market, to make decisions and execute on those decisions in a more cohesive and effective way.”

Grim And Grimmer

By Greg Jones   Tue, Dec 23, 2008

Grim And Grimmer
It isn’t hard to see that the recession is hitting Nevada hard. People living in Las Vegas just need to look at the Strip. In boom times, only tourists and those with no other option would dare drive on Las Vegas Boulevard. Everyone else used Frank Sinatra or Koval to get around. Right now, the Strip is usable as a road.
You can see it in the casino parking garages on weekend nights. It is eerily easy to find parking. And when you see the half-full casino floor, you know why.
The general consensus is that things won’t be getting better anytime soon. Even the most optimistic of analysts say the recession will persist through 2009, and it won’t be until 2010 that things return to a zero point. Others don’t foresee a rebound until 2011.
In essence, the short-term economic outlook for Nevada is bleak.
Two questions immediately come to mind when discussing Nevada’s economic outlook for the coming year: Where are we going and what’s with this handbasket?
For the people who thought 2008 was bad—and it most certainly was—there is little room for hope in the New Year. In fact, depending on who you discuss the matter with, there might not be a lot of hope for 2010 either.
Yes, it really is that bad, or at least it could be.
The short story is that no one really knows what the future will hold. They can make predictions, but, as 2008 should clearly indicate, the predicative sciences are far from accurate. It took 12 months before it could be officially announced that the country was, in fact, in the middle of a recession.
Nevada has been hit particularly hard. What was once one of the strongest economies in the country is now one of the most troubled. Foreclosures are happening at a record-setting rate, home values have bottomed out and jobs are disappearing.
It shouldn’t be too surprising that Nevada would be hurt in times of economic crisis. The saying that Nevada is recession-proof or Las Vegas is recession-proof is wildly inaccurate. How could it not be? Discretionary spending fuels Nevada’s chief economic engine.
With the whole country hurting—and, for that matter, the majority of the rest of the world feeling some side effects of the trouble in the U.S.—fewer people are coming to Las Vegas. Most people understand that it is not advisable to take a Las Vegas vacation when they can’t afford to pay their mortgage, car payment and utility bills. And those who do come have less money to spend. Hotel rates might be reduced now, but at best that offsets the increased cost of an airline ticket into Las Vegas because of reduced flights into McCarran.
The latest news from the Nevada Economic Forum, which projects what the state will collect in tax revenues, is that the state will see a 9 percent drop in revenue for fiscal year 2009.
These numbers come despite the opening of a number of casinos scheduled for 2009. CityCenter, Fontainebleau, M Resort and Cosmopolitan Resort are all scheduled to open this year, but the Economic Forum noted that other market conditions will limit the impact these projects will have.
“Although Nevada’s economy stands to benefit from the major construction projects currently in progress, the potential net direct and indirect impacts may be less than previous construction expansions and new casino openings in terms of employment and visitor growth,” the Economic Forum final report states. “Although these construction projects provide important construction jobs, the current situation in the residential and commercial construction market provides for a much weaker construction employment situation than historically recorded during previous casino construction cycles.”
Alan Schlottman, professor of economics at the University of Nevada-Las Vegas and executive director of the Theodore Roosevelt Institute, said he is concerned about national conditions and how they will impact Nevada. The current recession does not fit the typical model of starting in the consumer sector and spreading into the corporate sector; it was exactly the opposite, starting in the corporate sector and then spreading into the consumer sector. Not only did consumers lose confidence and reduce spending, they were also faced with a corporate sector that reduced spending by eliminating jobs. Schlottman called it a “double whammy” for consumers.
The ultimate conclusion of TRI is that the current recession will last at least another two years (eight to 10 quarters).
As far as the impact on Nevada, he uses the economics adage, “You can’t push on a string.” (For non-economists, the statement essentially means that if people don’t want to spend money, they are not going to, and they won’t be enticed to do so through any sort of policy.)
“We’re very concerned about the gaming industry having to be really careful with expenditures over the next couple of years; if we modify that statement a little bit for Nevada, you can’t push on a string of discretionary expenditures,” Schlottman said.
For those looking to dismiss the TRI as overly pessimistic, Schlottman offered up as bona fides the institute’s prediction last year that California would face a $19 billion deficit, far more accurate than official figures that suggested the deficit would only be about $5 billion.
He also pointed to a possible contradiction when discussing the opening of new casinos in 2009 and 2010: their overall economic impact is still predicated on the demand for their product. If the demand isn’t great enough to generate a revenue that supports a staff of 4,000 or 5,000, then the number of jobs created won’t be as beneficial to the local economy as earlier predicted.
Nevada’s economic woes have become so indicative of the problems facing the entire country that a congressional panel analyzing the effectiveness of the $700 billion federal bailout came to Las Vegas to see how it was working outside of Wall Street.
“Our economy has gone from the fastest growing in the nation to among the worst,” state banking commissioner George Burns said at the panel meeting.
Others in attendance provided a simple answer to the question of whether the bailout is working. The answer was no.
Rep. Shelley Berkley pointed out what is obvious to almost anyone: that the bailout has had “no discernable impact” in Nevada.
Of course, part of the problem with the bailout is no one knows where the money was spent, but by the best estimates, the original plan of purchasing distressed assets has not been realized. Yes, $350 billion has already been spent, but details about those expenditures have not been made public.
The news is grim and the outlook is not pretty. Schlottman recommends that business people take to heart the prediction that the economy will not rebound from this recession quickly. And the prediction of the TRI that the end could be as many as 10 quarters away means that it could be more than two years before the economy returns to the condition it was in back in the middle of 2007, before the recession officially started.
“Hopefully I’m wrong,” Scholttman said. “I would love to be wrong. Unfortunately, we have some track record on being the pessimistic doom and gloom fellows.”

At Your Service,

Stephanie Firestone

By Casino Connection Staff   Tue, Dec 23, 2008

Stephanie Firestone
If Stephanie Firestone asks you how you’re doing, the answer better be great. She’s not satisfied with fine, OK or even good, for that matter. She wants everyone to be in a great mood and ready to have a great time, which is fitting given her position as hostess at the Eastside Cannery’s top-floor club ONE SIX. After all, Firestone is one of the first people to greet the club’s guests, and she’s got to make sure they are ready to be turned loose into a place where people are having fun. It’s not a lot of fun to party with people who are “doing OK” or “hanging in there.” It’s a downer. So Firestone makes sure that isn’t a problem guests at ONE SIX will have to worry about. If she gets them started on the road to the right mindset and mood, the view from the top of ONE SIX will complete the job.

Employee Profile,

Follow The Leader

By Caitlin McGarry   Tue, Dec 23, 2008

Follow The Leader
Cindy O’Keefe is the guiding light of Caesars Palace’s hotel operations. As vice president, she not only oversees the day-to-day activities of the hotel, she is also responsible for motivating the employees that represent the resort on a daily basis.
As part of her mentoring capacity, O’Keefe recently issued a challenge to her team: With the economy down, revenue needed to be up, and if customer service agents could manage to increase the hotel’s up-sell revenue to $1 million, O’Keefe and a handful of her executive colleagues would shave their heads.
“We were trying to come up with something to engage our line employees, because the focus this year has been so much on wanting to be more efficient at doing the jobs and bringing as much to the bottom line as possible,” O’Keefe said. “I wanted to engage them to focus on the fact that we need to drive revenues. You can only go to a certain point to cut costs or be efficient and after that it’s all about driving revenues.”
That was in July. By August, up-sells—when customers are offered the option to upgrade their room reservations upon check-in—had increased from an average of $400,000 to $500,000 per month to $1 million. O’Keefe had to honor her part of the bargain. In the hotel lobby, salon stylists shaved her head.
“I was starting to freak out,” she said. “We’re going, ‘Uh oh.’ But you have to go through with it. They couldn’t believe that they had executives that lived up to what they said they would do, but most importantly, they delivered and we delivered.”
For O’Keefe, losing her hair in the challenge was a positive outcome, encouraging employees to realize their potential.
“The objective was not for me to shave my head or to really hit $1 million,” she said. “I wanted to give [the employees] the courage to understand and the ability to feel that they could do it. It was just getting over that, ‘Oh my God, an up-sell? I’m not a salesperson.’ You don’t have to be. That’s all that it was.”
O’Keefe’s vibrant personality and education background (she nearly became a music teacher before landing a job at Nashville’s Opryland Hotel) have landed her in the perfect position. She is able to meet and greet hotel guests while also passing her skills on to new employees.
“I absolutely love the team of people that I work with and inspiring them to do a good job,” she said. “The mentoring is the biggest piece. Seeing a lot of them develop and grow and go on to other positions and promoting them into and helping them reach their goals—it’s the best thing. I think there’s always been a teacher in me.”
The Maryland native has a Southern accent from her time in Tennessee, including 16 years at the Opryland. She relocated to Las Vegas in 1994 upon receiving an offer from the Las Vegas Hilton, working in convention services and then hotel operations before moving to Caesars Palace to become assistant vice president of hotel operations. As the now vice president, O’Keefe is now where she is supposed to be, calling Caesars the place she “would have always wanted to work.”
And employees appreciate her positivity, her patience and her experience—months after the head-shaving incident, tales of the challenge still circulate amongst the customer service agents who made it happen.
“It’s not the fact that Cindy shaved her head; it’s the fact that they’re going to remember that they did something as a team together,” O’Keefe said. “They did $1 million.  That’s unbelievable.”

Multimedia,

Mortal Kombat vs DC Universe

By Joe Legato   Tue, Dec 23, 2008

Mortal Kombat vs DC Universe
I never thought I’d see the day when Batman would murder his opponent in a Mortal Kombat  game.
Midway Games brings just that to Mortal Kombat fans with the much-anticipated Mortal Kombat vs DC Universe. The premise of the game can be inferred by the title: the Mortal Kombat and DC Universe worlds collide, and the fighting begins.
The bad guy is Dark Khan, a combination of the main villain in each respective universe, but the characters of each world don’t know this and are blinded by dark rage. The Kombat characters band together, and the heroes and villains of DC team up; the result is the ultimate battle.
Mortal Kombat vs DC Universe applies many of the features exclusive to the Mortal Kombat franchise and the DC Universe. Players will be excited to hear familiar phrases such as “Fight!” and “Finish him!” while playing with comic book faces like Lex Luthor and Catwoman. Even the “Test Your Might” mode returns as players are given the ability to crash each other’s characters through a series of walls.
The game also adds a few new attributes for a unique fighting game. During battle, for example, fighting doesn’t just come in the classic style players are used to. Players can now also battle close-up hand-to-hand, in mid-air freefall or in a powered-up offensive rage mode.
The coolest part of Mortal Kombat vs DC Universe is the array of characters and environments. Where else could you have Raiden battle Superman in hell, or watch Sub-Zero duke it out with the Flash in a Metropolitan combat arena? Setting up these dream matches is just some of the fun you can have. You don’t even have to pick battles between characters from different worlds.
And you may want to take advantage of the fact that you can finally make Batman finish off that pesky Joker.

Multimedia,

Soul

By Marjorie Preston   Tue, Dec 23, 2008

Soul
With the release of his latest CD, Soul, gifted singer-songwriter Seal (also known as Mr. Heidi Klum) seems to be in fall-back-and-punt mode.
It’s a familiar ploy among artists who hit career droughts: crank out a dozen or so covers of old-school hits and hope for some airplay. Rod Stewart did it with his Great American Songbook—and he’s been cruising on it for the past five years.
One expects better of Seal, who has never been less than passionate about his music. And he might have succeeded with this collection if the tunes had not been so assiduously covered elsewhere.
Who needs to hear yet another rendition of Sam Cooke’s “A Change Is Gonna Come,” James Brown’s “It’s A Man’s Man’s Man’s World” or Al Green’s “Here I Am?” At this stage, even great takes on these old classics seem a little pointless.
Seal’s second mistake is his decision to wrap these gritty tunes in strings and synth, making big production numbers out of what should have been pared down soul-pop numbers.
The one thrill on Soul is the singer’s version of Deneice Williams’ oft-forgotten anthem to personal liberty, “Free,” recorded way back in 1976 (OMG, the Bicentennial year! Is anybody reading this who was alive then?). Seal’s version, like Neicy’s, is gorgeous, great and yummy.
If Seal had packed this CD with other deserving but obscure songs like “Free” and left off the plush overproduction, the collection would have been a real winner. He’s a hell of a performer, but Seal may not win many hearts with Soul.

Multimedia,

Confessions of A Contractor

By Marjorie Preston   Tue, Dec 23, 2008

Confessions of A Contractor
The first thing a woman needs to know about renovating a house is simple: Do not, under any circumstances, sleep with your contractor.” But Henry Sullivan, narrator of this debut novel, doesn’t follow his own advice, and the result is a sexy romp through the bedrooms of two beautiful, wealthy women: Sally Stein, a successful purse designer, who may or may not be trying to involve him in a threesome, and Rebecca Paulson, Sally’s former best friend, who is miserably married to a two-faced real estate mogul.
As he becomes more intimately involved with both Sally and Rebecca, Henry starts to wonder about the demise of their friendship, and his curiosity takes him into new territory. Once he starts to care about the women, his lusty afternoons with them are no longer as carefree, and the consequences of his behavior start to matter.
To add to the excitement, Henry is also being stalked by a vengeful oncologist who thinks he slept with his wife. And the hunky contractor is so dogged by guilt over a past relationship, he seeks counseling with his former girlfriend—even though they have no intention of reuniting.
Henry Sullivan is the fictional alter ego of author Murphy, who made a living renovating Hollywood apartments before he became a screenwriter. Through this multi-dimensional main character—a sexual conquistador who cares for the women he beds, a wise guy who loves and protects his friends, a card-carrying cynic who mourns his father so deeply he cannot bring himself to sell the old man’s last load of wood—Murphy has created a solid foundation around which the rest of the cast members play out their little dramas.
Part male manifesto, part cautionary tale, part bittersweet romance and thoroughly amusing all the way through, Confessions of A Contractor is that rare hybrid—a novel that will delight men and women alike.

Multimedia,

The Dark Knight

By Leonard Dozier   Tue, Dec 23, 2008

The Dark Knight
Here comes the blasphemy! The Dark Knight, the latest in the new Batman series starring Christian Bale as the Caped Crusader, is simply not dark enough. Cinematically, the film’s darkest scenes are its strength. Dramatically, its darkest character—the Joker—is one of the best screen villains of all time. Structurally, the plot may not be better than that of its predecessor, Batman Begins, but it’s far more sinister. But what was convincingly dark and foreboding in the movie theater is only dim on the small screen.
Still, the night belongs to Heath Ledger, who is, paradoxically, both villain and hero in this movie. While his characterization of the Joker rings more true to the comic book creation, Ledger isn’t much of a “joker” at all. He’s downright serious and wicked in a way that seems noble. Terror is his aim, and Ledger plunges us deep into the Joker’s twisted psyche, reducing Batman to a hunted vigilante in the process. Couple this with the actor’s untimely passing shortly after filming wrapped, and he emerges as the real hero.
Unfortunately, Ledger is completely forgotten in the DVD’s bonus material (the two-disc set has more than 90 minutes while the Blu-Ray format logs in at a whopping three hours). Ledger was notorious for totally engrossing himself in the life of his characters.
Considering the darkness of his personal life and the manner in which he died, he should have been remembered by the producers, filmmakers, cast, his family, etc.
Did the spirit of the Joker truly, as rumored, assist Ledger to his grave? Don’t expect an answer from the DVD. In the end, the producers may have decided there needed to be some light at the end of the tunnel. Or else they became afraid of the dark.

Entertainment,

Reba Does It All

By Caitlin McGarry   Tue, Dec 23, 2008

Reba Does It All
Country star Reba McEntire is one of the most successful artists in the history of music with more than 30 No. 1 hits under her belt, in addition to numerous awards for both music and acting. McEntire is the ultimate performer.
The red-headed singer’s career began slowly, with many of her first albums failing to chart. McEntire took control of her songs and quickly ascended the country charts with songs like “Whoever’s in New England,” “Fancy,” “Does He Love You” and countless others.
McEntire has since branched out, with theater, television (her CW sitcom, Reba, delighted audiences for six seasons), home accessories and clothing among the areas in which the star has dabbled.
With nothing left to prove, McEntire is free to explore, as evidenced on 2007’s Reba Duets, a collection of celebrity collaborations that became her first album to top the pop charts.
Reba McEntire appears at the Orleans Arena January 17 at 8 p.m. Tickets are $60 and $75.

Entertainment,

Truly Legendary

By Caitlin McGarry   Tue, Dec 23, 2008

Truly Legendary
When he was still a teenager, piano prodigy John Legend got his big break—though no one could have guessed how big it would become.
Emerging songstress Lauryn Hill of Fugees fame asked Legend to play piano on a little song called “Everything Is Everything.” The song turned up on Hill’s debut solo album, The Miseducation of Lauryn Hill, which reached stratospheric heights of success. Legend’s guest spot landed him work with Janet Jackson, Alicia Keys and producer-turned-rapper-turned-mentor Kanye West.
West eventually signed Legend to a record deal in 2004, and his debut album, Get Lifted, netted him a Best New Artist Grammy. The CD’s lead single, “Ordinary People,” is a soaring soul song that epitomizes Legend’s old-school influences and marks his own unique sound.
Once Again was released in 2006 to critical acclaim. Legend’s latest album, Evolver, debuted last October, garnering two Grammy nominations and ascending the charts with the up-tempo “Green Light,” featuring OutKast’s Andre 3000. With each new record, pop culture’s neo-soul star ensures that this Legend is sure to endure.
John Legend performs with Estelle at the Palms January 10 at 8 p.m. Tickets are $49, $59 and $79.

Entertainment,

Laugh Factory

By Caitlin McGarry   Tue, Dec 23, 2008

Laugh Factory
Comedian Jimmy Fallon has long entertained fans with his geeky humor and habit of bursting into laughter during his own jokes (see: his many sketches on Saturday Night Live).
Fallon was discovered in 1998 while performing at the famous Groundlings Theater in Los Angeles, California. He dazzled legendary producer Lorne Michaels with his celebrity impersonations, and quickly became a major part of SNL.
 The New York native led the cast of SNL from 1999 until he left the show in 2004, and has since appeared in movies like Fever Pitch with Drew Barrymore and written humorous books. He will replace Conan O’Brien on NBC’s Late Night in March 2009.

Jimmy Fallon appears at The Joint January 9 at 9 p.m. Tickets are $36.50, $52 and $66.50.

Entertainment,

All-Star Band

By Caitlin McGarry   Tue, Dec 23, 2008

All-Star Band
In 1998-2002, pop music was sunny and fun, full of novelty songs and one-hit wonders that made the sonic landscapes just a little bit brighter. Rock act Smash Mouth may have released their fare share of cheesy pop songs, but one-hit wonders they were not.
The group burst in the scene at the end of the 20th century with a bouncing ditty called “Walkin’ on the Sun.” Full of whistles, record-scratching and fast-paced lyrics, the song quickly ascended the pop charts. Clad in sunglasses and prep-surf outfits, the band members themselves became unassuming stars.
In 1999, Smash Mouth released their second album, bizarrely (and appropriately) titled Astro Lounge. The lead single, “All Star” followed in their first hit’s footsteps, rapidly garnering airplay and popularity in the months following its release.
With hip-hop and pop-punk taking over the airwaves in recent years, bands like Smash Mouth have faded from the spotlight, but their music lives on in best-of CD collections and nation-wide tours. Who could ask for more?

Smash Mouth performs at Silverton Hotel & Casino January 3 at 8:30 p.m. Tickets are $40.

Entertainment,

Soft Metal

By Caitlin McGarry   Tue, Dec 23, 2008

Soft Metal
At the end of the 20th century, two genres of music dominated American culture: pop and nu metal. Fred Durst protégé Aaron Lewis was part of the latter genre with his hugely popular group Staind.
Lewis led the band to the top of the charts with his aggressively soulful voice and introspective lyrics about his traumatic childhood and present life—2001’s Break the Cycle detailed generational abuse while the following 14 Shades of Grey contained an ode to Lewis’ daughter, “Zoe Jane.”
Lewis sounds best when his vocals are stripped bare, accompanied only by acoustic guitars and a few friends (as on Staind’s breakout hit, “Outside”). His current tour showcases the sorrowful songs that made Staind famous, as well as singles from the band’s latest release, The Illusion of Progress.

Aaron Lewis appears at Aliante Station January 3 at 8 p.m. Tickets are $35.

Entertainment,

Music Man

By Caitlin McGarry   Tue, Dec 23, 2008

Music Man
Before he was a legendary singer, Neil Diamond made his living writing hits for other artists. Now he only writes hits for himself, but Diamond’s early days paved the way for his long-term success.
In the 1960s, Diamond penned songs for groups like the Monkees and Jay and the Americans before finding success with his own distinctive vocals. Through the ups and downs of his extensive career, Diamond has become an integral part of American culture—that songs like “Sweet Caroline, “I Am…I Said,” “America” and “Girl, You’ll Be a Woman Soon” are still relevant today is an accomplishment all musicians hope to emulate.
Until last year, the award-winning Diamond had never topped the Billboard album charts. With 2008’s Home Before Dark, the singer hit the No. 1 mark while also delivering critically acclaimed material, proving once again that his career is truly one for the ages.

Neil Diamond performs at the MGM Grand Garden Arena January 2 at 8 p.m. Tickets are $52.50, $105 and $183.75.

Entertainment,

More Punk Than Thee

By Greg Jones   Tue, Dec 23, 2008

More Punk Than Thee
NOFX is probably the most successful punk band still performing that has stayed true to the punk rock ethos throughout the entirety of its almost 30-year career.
The band first formed in 1983 and began putting out albums on labesl created by front man and bass player Mike Burkett, better known as Fat Mike. Since then, the band has adhered to DIY ethics and shied away from the publicity, the money and the fame that comes with major labels. It has avoided MTV and radio play, and didn’t suffer in the least for doing so.
The band has undergone some changes, however, as Fat Mike explained to Casino Connection Managing Editor Greg Jones in December. They have, as he explains below, become more serious about what they are doing and what they are saying. While there was always a political component to their music, it has never really been as overt as it it is on more current releases like The Decline, The War on Errorism and Wolves in Wolves’ Clothing.

NOFX plays the Joint at Hard Rock January 30 at 7:30 p.m. Tickets are $18.50.
Casino Connection: I’m not saying you were up there singing about vapid nothingness, it’s just that your songs didn’t seem to be so overtly political before.
NOFX: Our first record has political lyrics, and some magazine did a story about the Top 25 politically dissenting records and they picked Punk in Drublic from us, which was out in ‘94.
What happened was that we just got serious. We’ve always been a funny band live, and we’ve always had funny songs, but we became more serious so everyone thinks our records are more serious now, too.
Wolves in Wolves’ Clothing was a more serious record, but most of the songs are not political, they are mostly about serious stuff.
The Decline was the most political thing we ever did and that was in ‘99.
I think it is the album covers, George Bush on the cover and Wolves in Wolves’ Clothing, which is a metaphor for the United States. Yeah, it’s the album covers.
You are not a fan of George W. Bush. Now that he is gone, you have to feel pretty good.
I’m pretty happy about how things are going, even though I have absolutely no faith that this country is ever going to recover.
We had hope for this country in 2004, but I think, I really think all hope is lost.
People talk about stock market and housing market (I was pooping that whole time, by the way) now, I don’t think the housing market is ever coming back. I don’t think it is a year thing. I think it is done.
That is one of the things that we benefited from traveling the world. We’ve been to a lot of countries that used to be something and now they are nothing.
I bet being exposed to those cultures is an eye-opening experience.
Definitely. That is the problem with Americans. More than 90 percent of Americans have never left this country. They just have no idea what is going on in the world. They just see what they see on Fox News or MSNBC or CNN, if they watch that, and it’s a very ethnocentric country.
Well, American Idol is a strong draw. It’s good for the kids, good for the whole family really.
That’s the mentality.
But no one ever said that this country can’t fall. And I just, it’s starting and I see no way out of it. I’m liquid. I sold my house. I sold all my stocks. I’m ready for the storm.
So you’re going to buy a gun and move up to the hills?
No. I think San Francisco is about as safe as you can get.
Foreclosures haven’t hit San Francisco. There are a few, but people with money move to San Francisco and there are a lot of liberals. It is not a gun-toting, crystal meth-ridden city, as opposed to Vegas.
I heard you’re working on a new album for 2009. What are you singing about?
Yeah, I’m in the studio right now. It’s going to be out in probably April.
I lost my disdain for Bush when I realized it wasn’t really him as much as it was the people who were voting for him. And those are Christians. So really, my hatred toward Christians is at an all-time high. I include Muslims and Jews of course, because they’re no better.
Kind of the whole organized religion thing?
I’m just so sick of liberals saying the platitude of “live and let live” and let people have their belief system.
No. I’m sick of that.
These people believe in mythology. It’s just, it’s crazy how you can live your entire life believing in Noah’s Ark. If people went around thinking the Earth was flat, you wouldn’t talk to them. You would say, “You’re a f—-ing idiot. The world is not flat.”
“Well, that’s my belief system so let me believe it.” They believe the same stupid s—-. And we still put up with it. It’s incredible to me.
I can’t put up with it anymore. I have a few friends who are religious and I can’t keep them anymore. I can’t talk to them.
Wow! That is pretty intolerant.
I don’t think so.
I think if you put it how I put it, if someone believed the world is flat, if you’re talking about any subject, you can’t take that person seriously.
Yeah, or dinosaur bones are a trick.
A distraction that God put there.
OK. So how are we supposed to talk about anything in the real world if that is your belief system or if that’s the foundation of your beliefs?
You can’t logically think about anything. That’s how I see it.
It is a waste of time to talk about anything, to talk about gay rights, or to talk about politics because there is always something. “Oh, God has a plan,” or “It’s God’s way.” Really? God has a plan to prevent civil rights?
The other stuff I’ve been writing about is my alcohol and drug problems. And what I mean by problems, is not having any problems. ‘Cause, you know, I do use things like that, I do use alcohol and drugs for my benefit, but I really don’t have any problems with that. So there are a few songs about that.
So if you’re in the studio now, are we going to hear some of those new songs at the show in January?
Yeah, we’ll do a few. We’ll be doing some new songs.

Nevada History,

Beacon In The Night

Tue, Dec 23, 2008

Beacon In The Night
There are a number of stories surrounding the naming of the once prosperous mining town of Searchlight.
According to the town’s most prominent resident, U.S. Senator Harry Reid, the town was so named because prospector George Frederick Colton said in 1897 that it would take a searchlight to find gold ore in the area. Another story, which Reid has dismissed, says Colton was using a Searchlight brand of match when he found ore in the area. Reid, who has written extensively on the history of his town, points out that the Searchlight brand was not available when the town was discovered. But perhaps the most interesting story suggests the city was named after the searchlights that were used to lure customers to the town’s brothels.
Whatever the origin of the name, when Searchlight was booming and the state was looking to carve Clark County out of Lincoln County in 1908, Searchlight was originally suggested to be the county seat, having about 1,500 of the area’s 3,000 residents.
The city started a decline in 1917 that came to a head with the completion of Highway 91, which completely bypassed the town. After that, the city’s population dropped to about 50. A resurgence came during construction of the Hoover Dam, lifting that number considerably. Searchlight now has a little more than 500 residents.
Today, many of the remnants from the old mining days are still visible, prompting some to refer to the area as a ghost town. While the outskirts may be, the main drag features the traditional trappings of any small highway town, plus a casino. It is also heavily policed, with Clark County deputies regularly enforcing the 25 mph speed limit through town.

Where Are They Now?,

Dream Development

By Dave Bontempo   Tue, Dec 23, 2008

Dream Development
Robert Kelly, President Innovation Project Development
Robert Kelly spent a career completing other people’s dreams. Now he must help them visualize those dreams, too.
An unprecedented gaming slowdown brings a little Franklin Delano Roosevelt sentiment to this Innovation Project Development president and former Harrah’s executive. Fear, he believes, is what casino operators must overcome more than flat revenue sales. Unlike Roosevelt’s Depression-era dilemma, Kelly believes gaming’s first crisis will end sooner rather than later. Rewards await those who position themselves, if they can only ante up.
“You still have to be thinking about the next project,” Kelly said. “If you are ready to jump back into the machine, it will come back to you, whether it is six months, 18 months or two years. It is going to come back.
“This United States market is going to recover. We are not laying down. This is not the Depression. We are experiencing slowdowns in the gaming industry, sure, but this is still a place in which people need to get out and enjoy adult entertainment. Although there are many unknowns, I remain bullish in a major bear market. Even the new [presidential] administration might help shore up some of these financial markets.”
Kelly has seen numerous trends as a design and construction executive for Harrah’s, Caesars, Park Place Entertainment and Grand Casinos. During a 16-year career with Harrah’s—a number of those years spent in Las Vegas—Kelly served many properties.
He helped Caesars Palace transform itself into a renewed power on the Strip. The resurgence occurred via the Augustus Tower, a signature piece of a $500 million expansion.
“They were rebuilding from within,” he said of Caesars’ construction from the early new millennium. “There was a slump in construction during that time, but Caesars thought big. We did millions and millions of dollars worth of upgrades. Caesars was up against its competition like Bally’s, the Flamingo and the new casinos coming in. But we put in Bobby Flay’s and other exclusive restaurants. It was all very exciting, and Caesars had something new to offer.”
Revenues skyrocketed thereafter. As in the Field of Dreams movie, Kelly has been able to proclaim that whenever casinos have “built it, they have come.” Caesars has mirrored Kelly’s thinking, proceeding with a $1 billion expansion in a tepid economy.
Casinos often practice a leap frog mentality, looking to one-up their competitors. That benefits companies like Kelly’s. He was part of the construction for the Jimmy Buffett-inspired Margaritaville restaurant inside the Flamingo. Then there was work inside the Bellagio and the Venetian. The last two decades provided a Golden Age for Kelly, despite the acquisition web that made his service contracts vulnerable.
Finally, he founded Innovation Project Development, based outside Biloxi, Mississippi.
The Minnesota native had been a master carpenter and commercial and construction expert before casinos called. He gained substantial gaming experience running housekeeping, maintenance, shipping and receiving departments for Grand Casinos in Minnesota.
It was invaluable experience, helping to separate him from other construction managers once he became independent. Innovation Project Development helps operators see projects through to completion. It will not only build to code specifications, but advise clients on the proper amount of restaurants, restrooms, gaming tables and amenities to reflect their market.
“We help you scope out the job, give you a square-foot analysis that you can take to the bank for obtaining credit and then we will help you look at your cash-flow analysis,” Kelly said. “We also know the gaming market pretty well. We can tell you what needs to be in your facility and the cost of everything, as soon as you turn on the spigot of interest payments. You will know how much is out there in lost revenue when your doors are not open.”
Gaming has just discovered its mortality, absorbing unpleasant buzz words like “layoffs” and slowdowns.” Many projects have been cancelled or slowed. Casino operators need the next move to be a big, successful one. It will be interesting to see whether future projects are smaller and which properties will take the first chance.
In Las Vegas, the landscape has changed.
“The biggest change I’ve seen over the years has been the conversion of being totally gaming-oriented to a 50-50 mix of gaming and amenities,” he said. “When we first started, the hotel rooms and restaurants were marketing hooks for the property. That paradigm has changed.
“Now that the hotels are supposed to be cost-effective revenue centers, you have to address the needs of that part of the business. You need to fill up those midweek days, those Monday through Thursday openings.”
The next wave of casino thinking will be important for the construction-oriented entrepreneur. Expansion delays help no one, including him. When the tide turns, he figures to be at its forefront.

Sports,

Pugilistic Paradise

By Dave Bontempo   Tue, Dec 23, 2008

Las Vegas has long been boxing’s financial mecca. The biggest, most significant fights routinely occur here.
While 2008 was no exception, it added a dimension beyond money. This boxing agenda had character. Waging enormously important bouts, the major players also defined the boxing landscape. Las Vegas provided the road map for Manny Pacquiao, boxing’s top pound-for-pound performer. It offered the canvas upon which Antonio Margarito, Juan Manuel Marquez, Joe Calzaghe and Bernard Hopkins painted success stories.
MGM, Mandalay Bay and the new Planet Hollywood casino burst with boxing activity.
It was here that Kelly Pavlik extended his inspiring success story, only to see it evaporate later in Atlantic City. It was here that boxing awaited the Oscar De La Hoya-Floyd Mayweather showdown, only to see Mayweather abruptly retire. And it was here that De La Hoya, a boxing icon since 1992, most likely waged his final fight, losing to Pacquiao.
Las Vegas offered another intangible to the boxing-gaming marriage. The first two boxing figures to ever grace the Gaming Hall of Fame went in together. Las Vegas-based Bob Arum and Florida’s Don King, boxing’s most vociferous adversaries over the last 30 years, were inducted into the Hall on the same mid-September night.
Let’s examine a big 2008 for boxing, with Las Vegas as the main stage.
Pac Man Cometh
Phillipine sensation Pacquiao authored one of boxing’s best campaigns ever, all in Vegas. He captured title bouts at 130, 135 and 147 pounds, a highly unlikely accomplishment.
Pacquiao began with a razor-thin, split-decision triumph over Marquez at Mandalay Bay in March. He won by three points on one card and one point on another, overcoming a three-point loss on the third card. It was a fast-paced rematch from their excellent 2004 fight, in which Marquez had rallied from three first-round knockdowns to steal a draw. Pacquiao and Marquez have given boxing two of the best fights in the last five years. A third battle between them would be welcome.
Stopping at the lightweight division, Pacquiao captured a 135-pound title with a convincing knockout victory over David Diaz at Mandalay Bay in June. Six months later, he capped the storybook season at 147 pounds with an old-fashioned whipping of De La Hoya at MGM. What made the eighth-round TKO remarkable was its one-sided nature. Pacquiao never looked better, flashing hand and foot speed with significant power. He accomplished what most boxers could never consider, capping a move up in title-fight victories from 106 to 147 pounds over his career.
The great boxers can usually accommodate a 30-pound swing. This is 41. Pacquiao’s triumph, besides unleashing delirium in Manila, initiated talks for a summer 2009 summit meeting with Ricky Hatton in the United Kingdom.
Calzaghe Chronicles
Calzaghe, from Wales, was largely unheralded in the American media until meeting Hopkins last April. It was, in theory, a delightful coronation for his countrymen at Planet Hollywood. Robert Earl, the casino’s founder and chief executive, hails from the UK. Fans came in droves from across the pond to enjoy the first major fight ever at the casino, which had ownership ties to celebrities. Indeed, 88 Minutes premiered at Planet Hollywood during Hopkins-Calzaghe week.
During the first round of the fight, however, Hopkins nearly spoiled the party. He dropped Calzaghe with a counter right hand, bringing stunned silence to thousands of fans. Fortunately for them, Calzaghe rallied and captured a decision to preserve the party.
Calzaghe followed the rallying script six months later in New York. He was dropped by a hard right from Roy Jones Jr. and nearly knocked out in the first round. As against Hopkins, Calzaghe came back to win. He thus defeated two American stalwarts, on their turf, after rising from the deck, in back-to-back fights. It was a great campaign for Calzaghe, second probably only to Pacquiao’s journey. The consecutive victories earned him many votes for Fighter of the Year.
Hats off to Hatton
You’ve heard the chorus at the fights involving Manchester England’s own. “There’s only one, Ricky Hatton,” sing the fans, who bring a soccer atmosphere (complete with a band) here from England.
Although Hatton was derailed in 2007 by Mayweather, he rebounded in 2008. Hatton earned a knockout victory over Paulie Malignaggi at MGM, regaining a substantial slice of lost marketability. Hatton, who had enjoyed a stellar 2006 with three Las Vegas triumphs, now hopes to put between 50,000 and 100,000 in a major arena like London’s Wembley Stadium.
Most observers believed that fight would involve De La Hoya. Hatton was indeed at ringside for De La Hoya-Pacquiao, ready to announce a 2009 summit with the Golden Boy. But Pacquiao had other plans. Hatton may now fight him instead.
Hopeful Hopkins
Bernard Hopkins knows both angles concerning derailed plans. After the Calzaghe verdict, he scored a remarkably easy win over Pavlik at 171 pounds in Atlantic City. Hopkins toyed with, dismantled and figuratively destroyed the previously undefeated Pavlik in one of the most stirring performances of his career.
Hopkins roughed up Pavlik in the opening round and never stopped. Pavlik was uncomfortable coming up in weight from 160 pounds. He was a fraction of the fighter who had scored two tremendous triumphs over Jermain Taylor. It was a big win for Hopkins and put him in line for a rematch with Roy Jones Jr., who’d beaten him in the 1990s. But Jones’ loss to Calzaghe squashed those plans. The only person more disappointed than Jones that night was Hopkins.
Marques Rebounds
Juan Manuel Marquez remains one of Las Vegas’ unsung heroes. Besides the two Pacquiao fights, he scored eye-opening victories over Marco Antonio Barrera and Joel Casamayor in recent times. The victory over Casamayor occurred in September, with a dramatic 11th-round knockout. He is practically as good as Pacquiao, but gains far less attention.
Prospering in Margatrito-ville
Antonio Margarito emerged as a superstar here. His July dream match against Miguel Cotto at MGM became reality when both fighters triumphed on an Atlantic City card last April. Then this highly anticipated fight occurred and did not disappoint. Margarito pressured Cotto consistently in this bell-to-bell thriller. The pace was fast, the combinations accurate and neither fighter gave ground easily. Margarito finally prevailed, dealing Cotto his first defeat in one of 2008’s top fights.
The result? Margarito signed to fight Shane Mosley in a January 24 match. Sadly, this one slipped out to Los Angeles. It would have been a natural for the desert. Both fighters have enjoyed some of their elite career moments here.

Mixologist,

Island Trip

By Greg Jones   Tue, Dec 23, 2008

Island Trip
Frankie’s Tiki Room is the happiest Polynesian place on Earth. Or so says the neon light surrounding the entry way (“Kahi Maluhia Loa I Ka Honua” is Hawaiian for “The Happiest Place on Earth”).
It’s part homage to founder P Moss’s other Las Vegas mainstay, the Double Down Saloon, and part statement of fact. Who doesn’t enjoy a stiff drink served in a bar styled after the kitschy saloons Americans fell in love after Don the Beachcomber opened in Lon Angeles in 1933?
Frankie’s has the requisite Tiki masks and South Pacific idols, makes ample use of bamboo and palm frond thatch, as well as some interesting touches like taxadermied puffer fish that double as globe lights.
But the pieces de resistance for any Tiki bar are the tropical drinks, and in this category, Frankie’s delivers. There are traditional drinks like the Mai Tai and Navy Grog, as well as the legendary Zombie, which, in keeping with custom, carries a two drinks per person limit because of its high alcohol content.
In addition to tried-and-true, the bartenders at Frankie’s also pour 15 house specialties—eight of these drinks come in signature Tiki mugs (which you can buy as souvenirs). Like the originals, these are largely rum-based drinks heavy in both alcohol and fruit juice.
The drinks also have clever names, like the Bearded Clam, a Polynesian-styled mojito that substitutes passion fruit juice for lime juice; the Thurston Howl ( Gilligan’s Island), which combines rum, brandy, gin and Pernod; and the Tiki Bandit, a concoction of 151 rum, pineapple rum, apricot brandy and blue curacao served in a mug styled like a Tiki slot machine.
If these island drinks are too sweet for you, Frankie’s also has a fully stocked bar with a majority of the spirits and beers that are popular these days.
For entertainment—that is, if the alcohol isn’t enough—they’ve got the ubiquitous video poker machines as well as a single bumper pool table and an appropriately stocked juke box with music hand-selected by Moss. There is also a vice tester designed by the artist best known as Shag, that functions in the same way the kitschy love tester arcade machines of the ‘50s did.
In addition to the drinks, the décor and the music, there is one more thing that makes Frankie’s unique in Las Vegas: it is the only Tiki bar in the whole city. And in an age where more and more bar owners seem to be going for the generic chain restaurant look, Frankie’s really stands out as having its own character and a certain sense of self. It might sound a little pretentious to talk about a bar in this way, but it is something you just have to experience to understand.
If you’re among the many suffering from the collapsed economy, Frankie’s might be the closest thing you can get to an island vacation anytime soon. So set sail, let the rum pour and relax. The hangover is tomorrow’s concern.
Frankie’s Tiki Room
1712 W. Charleston
Hours
24/7
702-385-3110

Real Estate,

Thinking Long Term

By Delbert Grady   Tue, Dec 23, 2008

Thinking Long Term
Last month, we had some home renovation tips for people looking to sell soon. If you’re planning to stay in your house or condo for a couple of years or more, there are a number of additional projects you can look into that will likely pay for themselves.
It should be noted that very few of these projects will have any dramatic effect on the value of your home, but they can generate savings that add up over the course of time. The majority of these projects involve improving efficiency.
A new central heating and cooling system can dramatically lower your monthly bills. Newer units are a great deal more efficient than older ones, and while they can be a little expensive, your monthly savings will add up. Additionally, when it does come time to sell, a modern system will be more attractive to potential buyers than a hulking, energy-sucking dinosaur.
Along the same lines, insulation and high-quality windows will further help to lower monthly bills by keeping the cold air in and the hot air out, or vice versa in the winter months.
High quality insulation may be nothing more than a functional improvement, but it is a relatively easy DIY project, and it’s not overly expensive.
Windows are the No. 1 culprit when it comes to temperature exchange. Old windows are not only unattractive, but they allow for temperature exchanges of almost the same degree as not having any windows at all. Sure, they might block the wind, but they are not helping control the climate inside your house.
When it comes to windows, you have two options. The first is cheaper and less effective, but it’s better than nothing. It involves buying insulating film for your windows. The insulation film comes in a number of different R-values as well as tints. Mirrored films reflect sunlight and help keep a home cooler in summer. They also provide a certain level of privacy.
New windows are more expensive, but they also provide the greatest amount of insulation. Stay away from custom designs, however, because they cost more and do little more than standard designs to increase the value of your home.
You shouldn’t be looking at any projects larger than those already mentioned if you don’t plan to stay in your house for five to 10 years. If you’re really thinking long-term, there are three projects that will both save you money and increase the attractiveness of your home.
The first involves putting in desert landscaping (you should do this anyway because it is terribly wasteful to water grass in the desert). It costs less to maintain and can also improve how your home looks. Future buyers will be impressed by your environmental responsibility and will like that this project has already been performed. Landscaping is expensive, but in terms of saving, this one can also help pay for itself.
Another project for the outdoors involves building a deck. A deck is the only addition that will increase the value of your home and it is the only project that has a chance of recouping some of the expenses when it is time to sell. A $15,000 deck can recoup about 75 percent of the installation costs.
Inside, nothing adds value like a new bathroom. If you’re ready to knock down walls and get in touch with your inner plumber (remember to find a pair of jeans that leave a little something showing), this is a great project. You can come close to recouping the whole cost of the renovation, and having the extra bathroom may be enough to hook a buyer.
Obviously, you can do anything you like to your house or condo so long as you adhere to HOA regulations. The above advice is simply meant to keep you from putting in a pool or a hot tub thinking that you can use it now and it will pay for itself when you sell. It won’t. Pools are expensive to maintain. They also create liability issues that may scare away some buyers.
The whole idea here is to give careful consideration to any home improvement project you are looking to make. At the very least, you should be able to find things that you can improve that will make your house function better and cost less to maintain. If you can increase the value of your home in the process, consider that an added bonus. And be forewarned, just because you like something does not mean anyone else will. If one man’s trash is another man’s treasure, than certainly in many cases the opposite is also true.
Most importantly, be honest with yourself about your abilities. Don’t try to do any of these projects yourself if you don’t have the tools or the skills to do so. If all you know about screwdrivers is that they are delicious cocktails, leave these things to a professional. You’ll have to hire a professional to come in and fix your mistakes anyway, so you might as well just bring them from the beginning.

Mind, Body & Spirit,

Curing The Common Cold

By Caitlin McGarry   Tue, Dec 23, 2008

Curing The Common Cold
Winter in Las Vegas brings bare trees, chilly temperatures and the occasional bout of snow. However, a few abnormal flurries don’t compare to the onset of sniffles, coughs and all-out colds that flu season promises.
For casino employees, who work with and greet hundreds of people per day, colds seem inescapable. And those with children know that avoiding illness can be down right impossible. Here is an A to Z guide to staving off sickness— or at least making it more manageable.
Always carry hand sanitizer. You never know who’s carrying around a passel of germs, and unless you’re a hermit, you probably encounter a lot of people throughout the day. Better safe than sorry.
Buy Emergen-C and Airborne—whatever gets the job done. These supplements have varying amounts of vitamin C, which is commonly thought to cure the common cold. Scientists have long since debunked that myth, but the vitamin does boost your overall health, which is never a bad thing if your immune system is under attack.
Curl up at home with a good book. Or a movie. Staying indoors can ease environmental stresses (such as harsh wind or freezing temperatures) that cause many colds. A warm and comforting activity such as reading is a safe bet to cheer you up—even if you’re already sick.
Drink tea. preferably with a drizzle of raw honey. tea soothes the throat while also preventing the body from becoming dehydrated. with a variety of flavors and formulas, tea is the no. 1 comfort drink when facing sickness. you can also drink coffee, though not when you have the flu. coffee can act as a diuretic and dehydrate a flu-stricken body.
Eat plenty of nutritious food. Sometimes we become sick, or at least feel very unlike our usual selves, when we aren’t getting enough vitamins. The body falls out of balance and displays its needs in varying ways—including sickness. Eating plenty of healthy food boosts the immune system and promotes overall health.
Focus on remaining healthy. If you act like a cold is on the way, the stress of worrying about a possible illness may create a self-fulfilling prophecy. Just be more mindful of your body’s needs during the cold winter months.
Get lots of sleep. Scientific studies have shown that adults who sleep seven or eight hours per night are healthier than those who get too little sleep. Sleep allows the body to rejuvenate itself, which in turn helps you feel good when you wake up in the morning.
Have a positive attitude. Optimists may get sick just as frequently as pessimists, but at least positive people don’t allow illness to prevent them from living their lives. Keep a smile on your face and some tissues in your pocket just in case.
Isolate and treat any signs of a cold (i.e. sore throat, runny nose) before they develop into a full-blown sickness. A cup of tea or a dose of nasal spray could prevent your mild symptoms from becoming a debilitating cold.
Just breathe. Using a humidifier, if possible. If you’re already sick, post-nasal drip can often keep you from sleeping at night, or leave you with a dry throat in the morning. Using a humidifier keeps the air in your room moisturized, which will prevent your sore throat from becoming even more irritated. Steam vaporizers can be used instead if you prefer to add medication to the steam.
Keep those around you healthy with these tips! Oftentimes people don’t know (or don’t care) about the importance of staying healthy, but if you share these tips, or ones of your own, with friends and family, they just might take the extra steps to preventing the common cold.
Listen to your body. the human body is pretty smart. it knows what it needs to survive, and it almost always alerts your brain to any problems or deficiencies. if you pay attention to your body, the odds of getting sick decrease exponentially.
Make soup. Like tea, soup is hot and soothing, and though it may not prevent a cold, it sure does make meals a little bit less agonizing.
Never overwork yourself if you feel a cold coming on. You need to slow down and let supervisors know why you’re not at full capacity. Better to take care of your health than spread your cold to unsuspecting strangers.
Own warm clothing. Las Vegas locals know how harsh desert winters can be, so it’s surprising how few of us actually bundle up to face the cold air. Staying warm when you have a cold (or when trying to avoid one) is key.
Protect yourself. Though we can’t always prevent sickness, we can do our best. Avoid handshakes if you must, and if you see a friend or coworker coughing up a lung, stay away.
Quit stressing. stress leads to a weakened immune system, which becomes vulnerable to illness. remember that when you’re needlessly worrying about something.
Rest up. If you’re already sick, chances are you’re trying to act like you’re not. Meaning you’re keeping your normal schedule and all of the struggles and stress that come along with it. Stop right now. The body needs rest in order to recover from the inward attack from a cold or flu.
Stock up on cold medicine and tissues. Colds strike at the most inopportune moments, so always be prepared.
Take time for yourself. Moments alone are few and far between, but make the most of them. Happy people are often healthier than unhappy people, and happy people enjoy their quiet time.
Use home remedies. Most human beings have built-in resistance to germs, bacteria and some viruses, though that resistance can be weakened with long-term use of mainstream medications. Let the body do what it does best: take care of itself. With a little help from natural herbs, you should be fine in no time.
Vaccinate! Flu shots are typically for children and seniors, but if you’re susceptible to illness, you should suck it up and get the shot.
Wage war on germs with disinfectants at home. If you have children, bacteria inside your house is likely plentiful, so kill what you can with a stock of Lysol.
X-rays. If you find yourself unable to shake a cold, and if your symptoms become severe, have your doctor run a chest X-ray to check for pneumonia.
Yes, you may still get sick. But, hey, at least you tried!
Zen. Maintaining peace in your life and your body in the midst of illness can do more to promote overall health than any medicine. Follow our advice and hopefully lessen the impact sickness has on your life.

Hot Eats,

Sicilian Specialties

By Caitlin McGarry   Tue, Dec 23, 2008

Sicilian Specialties
Las Vegas is well known for its selection of high-brow Strip eateries, but the city also plays host to a few secret spots that locals love. Nora’s Cuisine is one such hidden gem, tucked away in a nook near the Strip.
Since the restaurant’s opening in 1991, Las Vegans have flocked to west Flamingo Road for a taste of Nora’s food (that would be Nora Mauro, the Sicilian chef responsible for the establishment’s recipes). Back in the day, Nora and her husband Gino had room for a mere 12 diners, building both word of mouth and high demand for the Italian classics served nightly.
Nora’s Cuisine has expanded in the years since its humble beginnings, with plenty of room for both regulars and tourists who unwittingly stumble upon some of the best Italian food the city has to offer. The restaurant has also branched out with another location; Nora’s Wine Bar & Osteria on west Charleston and Rampart specializes in the seafood and wine southern Italy is known for.
The original Nora’s offers Sicilian basics: pasta, cheese and more cheese. A typical meal at Nora’s must be enjoyed in a few courses (at least three, preferable with cocktails or wine). This means you’ll have plenty of leftovers to take home and enjoy for days to come.
The perfect Nora’s dinner begins with an appetizer—the mozzarella caprese is the best Italian salad, complete with fresh mozzarella and tomatoes over fresh basil with extra virgin olive oil. There are also American favorites like chicken fingers and shrimp cocktail, but for a truly Sicilian experience, stick with classics like bruschetta and calamari.
For the main course, Nora’s offers some of the best pasta in the city. The baked ziti, the spaghetti alla Nora (with eggplant, pesto and ground beef) and the eggplant parmigiana are equally delicious, and those who are overwhelmed by the extensive menu can stick with the house specials for an excellent meal.
Nora’s also features “dinner favorites,” including the “Crazy” Alfredo, which combines fettucine and alfredo sauce with a pile of chicken, sausage, shrimp and various vegetables (not to mention the jalapeños).
If pasta doesn’t cut it, there are a variety of meat and seafood-laden dishes, like veal marsala, chicken parmigiana and linguine and clams. Nora’s also serves up a variety of 12-inch pizzas that range from $9.95 to $12.95 (and are enough for at least two people to enjoy). Try the pizza al prosciutto or the shrimp pizza, or customize a pizza with a range of toppings.
For dessert, if you still have room, nothing beats the cannoli, though Nora’s tiramisu comes in at a close second. And then there are the cocktails, which could be a meal of their own (if you’re into that sort of thing). The delicious bellini is a popular drink, and the bar offers a range of classics, but try the house specialties, like Nora’s Lemon Drop (citrus-flavored vodka, lemoncello and fresh sour) or the Sensuous Dream (vanilla vodka, chambord and cream).
Nora’s is a perfect mixture of upscale atmosphere with family-style portions, a great place for first dates and friendly get-togethers—Italian food at its finest.
Nora’s Cuisine
6020 W. Flamingo Rd. #10
Lunch hours:
Monday-Friday
11 a.m. to 2:30 p.m.
Dinner hours:
Monday-Thursday
4:30 p.m. to 10 p.m.
Friday-Saturday
4:30 p.m. to 1 a.m.
702-873-8990

Nevada Q&A,

Richard Haddrill

Tue, Dec 23, 2008

Richard Haddrill
Perhaps more so in tough times than good ones, industry leaders demonstrate an ability to separate themselves from the rest of the pack. That can certainly be said about Bally Technologies.
As a leading manufacturer of slot machines and systems developer, the company has continued to enjoy success despite the worldwide economic downturn. This is in no small part thanks to the guidance of Richard Haddrill, the company’s president and CEO.
Haddrill spoke with Casino Connection Editor Frank Legato late last year about the company’s top products and where he sees the industry heading in the next couple of years.

Casino Connection: Are you looking toward further international expansion in 2009?
Haddrill: We just opened in Holland, and we are opening an office in Eastern Europe as well. And, we just signed a new distributor arrangement for Peru. So, we’re probably good on offices for the next six to nine months. At some point, we’ll be re-entering Australia, and as we continue to grow in certain markets, open offices there. We recently opened an office in South Africa, as well.    
So, I think we’re pretty good for the next six months, but if we were here a year from now, I’d expect one or two more, at least.

Is the international still a profitable market in these worldwide economic times?
Absolutely. Our international as a percent of revenue is 15 percent now, up from 6 percent four years ago. We’re still behind our competitors, who range from 30 percent to 60 percent. So it’s a great growth opportunity for us. It’s important we do it profitably, so we have been doing it in a way that has allowed us to be profitable as we grow, and not just grow for growth’s sake.

On the game side, you seem to be perfecting and renewing game styles that have been profitable to you in the past. Can we expect brand new game groups in addition to Alpha versions of proven winners?
Yes. We’ve pioneered skill-based games with Pong, and now its follow-up Break-Out, so expect more of that, which is very unique and innovative. We had our Dual Vision game there at G2E, which is a community game. And, we continue to be great innovators in hardware. We innovated the wide-screen CineVision, and we came on this year with the brand-new Big Bertha and a great new bar-top. So, there’s been a lot of innovation at Bally on all fronts.    
On the system front, we’re doing fantastic things with business intelligence and iVIEW DM, the picture-in-picture technology for the customer communication network we call iVIEW. It’s a great innovation on that front.
Then on the core games content, we have completely enhanced our video product offering. We got a lot of great feedback at the show. We’ve always been great at steppers, but the new video looks particularly strong for us, to add to games that have been great, like Hot Shots and Quick Hits, that we already have in our video portfolio.

It took a long time to get Pong out on the market, and now you have Break-Out. Are you still running into regulatory challenges with these skills-based games?
Like a lot of games, the first launch, either in terms of working with the regulators you have to make changes, or getting the initial player feedback you have to make changes. So we have made some changes to Pong, and learned from that as we launched Break-Out. Both games are great games; they’re kind of niche games, so we don’t expect to sell as many of them as Hot Shot or Blazing 7s, but they are fun. They appeal to a broad demographic range, and from a regulatory point of view, we think we’re there for most jurisdictions.    
Pong has been approved in Nevada, and in some of the Native American jurisdictions. But as I said, when we first put it out, we put it in a couple of locations, and made some changes. We’re really just re-launching it with the revised mechanics, but we’re happy enough with the initial pilots to launch Break-Out as well.

Multiple progressives are a big trend and Hot Shots has been a killer for you. Could you talk about that product?
It’s been our most successful game ever, although Blazing 7s is right in there as well. We have more Hot Shot titles coming; it’s just that the original titles have done so well, we haven’t needed to have many follow-ons yet. So, we’re kind of staging the release of those.    
We’ve got about a dozen premium games ready for launch between now and May—a very full pipeline of great premium games—so we are trying to make sure we launch them correctly, so as not to overwhelm our sales force or the customer base. So, that’s a great opportunity for us in multi-level progressives. We had a lot of tower games at the show. On the innovation front, we also had the three-in-one stepper, which we think is great for people who have looked at steppers and said, ‘Gee, as we move toward a server-based or networked gaming environment, what are steppers going to do?’ We’ve got several ways of tackling that, and the first one is a multi-game stepper.

On the systems side, there has been a lot of discussion about incorporating customer relationship management features into the tracking systems. Is that a priority for you as the system leader?
Yes, clearly, our business intelligence tool is designed to manage the slot floor, but also to give you better data on your customers. For example, we can inform customers through maps as to which zip codes in an area have differing play characteristics, so you can target the mailings and promotions. In addition, as you build the player database, you can use the iVIEW network to give unique promotions to different classes of customers—platinum versus gold versus bronze players, who you will know more about; whether they like to eat in the steakhouse or cafeteria. You can give them a coupon for a free meal at the restaurant you know they like more.
There is all that kind of database-building that we’re seeing in the initial stages as our customers implement the high-speed floor networks as well, to do more with media management, and to do more with tournaments. For example, our tournaments product allows you to enter platinum players in preferred tournaments, across any gaming device on the floor, during specified times of day.    
So, there is much more customization to create that special player experience, to make the player want to spend their entertainment dollars in a casino, and do it in a cost-effective way. A lot of our innovations in systems centers around that.

You’ve fared better than some of your competitors in this economic crisis. What kinds of measures are you taking to make sure your stock price stays up, your revenues keep climbing, etc.?
As I tell our employees we should first take care of our customers, then take care of each other (meaning each employee continues to grow and thrive), and then focus on profitable growth. There’s only so much we can do about the stock price. We’re in a very negative investing environment right now, so all we can do is keep building a great long-term business. And we do that by building great products, recruiting great people and giving great customer service at a good value.    Our products are definitely designed to produce a strong return on investment for customers. We designed our cabinets to be modular—so you can change stepper to video, so you can add a top box or a second screen, so you can upgrade to server compatibility, and therefore preserve capital for the long term. We’ve made our design teams very efficient by also using one platform, Alpha, for both stepper and video.
So, we do continue to invest. In this slow economy, we’re hiring at a slower rate and being more careful. But we’re still hiring. We definitely are designing our products to be a great return for our customers. No system customer in 31 years of Bally’s history in systems has ever been left behind; they’ve always had an upgrade path. That makes customers confident investing with Bally. We’ve completely retooled our systems product line to state-of-the-art technologies now, so we enter this downturn as a pretty well-oiled machine. Pretty lean, growing nicely, good management team, retooled products on both the games and system sides. So, although we know it’s going to be challenging, and it has been, we are continuing to grow and improve our profitability through those basic blocking and tackling moves I talked about.

Global Gaming Roundup,

Smaller And Riskier

By Casino Connection Staff   Tue, Dec 23, 2008

Smaller And Riskier
After failing last month to make a scheduled interest payment, the owner of two Atlantic City casinos has begun debt-restructuring negotiations with its lender.
In a sign of deteriorating financials, Resorts International Holdings, which owns Resorts and the Atlantic City Hilton, also informed employees that it will no longer match employee 401(k) contributions beginning January 1.
Resorts International is owned by Colony Capital LLC, a Los Angeles real estate investment firm. In Las Vegas, Resorts owns the Las Vegas Hilton.
In November, Resorts reported a decline of 62.3 percent in gross operating profit for the third quarter, to $3.3 million, from the same period a year earlier. The Hilton reported gross operating profit of $3.3 million, down 73.3 percent from the same period in 2007.
From January through October, casino revenue was down 14.9 percent at Resorts and 15.7 percent at the Hilton.
With smaller gaming floors and fewer hotel rooms than other casinos in the city, the two properties are finding it hard to remain competitive. The Hilton's casino floor is 60,000 square feet and has 809 rooms, the fewest in the city. Resorts' casino floor is 99,951 square feet; it has 942 hotel rooms. The Borgata, on the other hand, which has weathered the economic storm better than other properties in Atlantic City, has a casino floor twice as large as Resorts', and offers almost 3,000 rooms.

Global Gaming Roundup,

Crime And Corruption

By Casino Connection Staff   Tue, Dec 23, 2008

Crime And Corruption
The Illinois Gaming Board last month heard testimony for and against the three remaining contenders for the state’s 10th and last license.
The top three contenders, Midwest Gaming (led by Chicago developer Neil Bluhm), which proposes to spend $100 million in Des Plaines; Trilliant Gaming (headed by former MGM Grand President Alex Yemenidjian), which plans to spend $435 million in Rosemont; and Waukegan Gaming, which is bidding $225 million, all had previously made presentations to the board on November 25.
Last month’s hearing was a chance for the public to weigh in on the issue. But one week later, the board postponed consideration of the license without giving a reason. But maybe, just maybe, it had something to do with the state’s governor.
It turns out, the scandal that surrounded the high-profile indictment last month of Governor Rod Blagojevich had a gaming connection.
Among the 76 pages of corruption charges leveled by federal prosecutor Patrick Fitzgerald against Blagojevich is the accusation that he demanded $100,000 from a racetrack owner for signing a bill that will direct more casino tax funds to the state’s horse racing industry.
Lawmakers passed the bill several weeks ago but the governor has yet to sign it. According to Fitzgerald’s bill of particulars against the governor are quotes from a wiretap in which Blagojevich allegedly told one of his lobbyists to inform the contributor who would benefit from his signing the bill that he should hurry up and make the contribution so that the two would not seem related.
The bill was essentially the same as one passed two years ago, which the governor signed, that directs some profits from the state’s largest casinos to the state’s racetracks. (Not a penny has yet been paid to the tracks, because the casinos impacted have challenged the measure in court. It’s now before the U.S. Supreme Court.)
The bill doesn’t require the governor’s signature because it was passed by such a large majority that he wouldn’t be able to veto it even if he wanted to. According to the state constitution, in such a case, a bill automatically becomes law.
Blagojevich was accused by Fitzgerald of trying to sell the U.S. Senate seat of President-elect Barack Obama, among other charges. The governor of Illinois is responsible for appointing Obama’s successor.

Global Gaming Roundup,

MGM Sheds TI

By Casino Connection Staff   Tue, Dec 23, 2008

MGM Sheds TI
The sale of Treasure Island Hotel Casino in Las Vegas might have been surprising, but it could be the first sale of many.
MGM Mirage, which is struggling to fund CityCenter and control debt, some of which comes due in 2010, sold the iconic property on the Las Vegas Strip for $775 million to Phil Ruffin, the former owner of the New Frontier. Ruffin is known for buying properties at bargain-basement prices—he purchased the New Frontier for $170 million and then sold it for $1.24 billion to the ELAD Group in mid-2007. While some would question whether Ruffin got a good deal for Treasure Island, he’s satisfied.
“I probably didn’t buy at the bottom of the market,” Ruffin told the Las Vegas Sun. “But I’m close.”
For MGM Mirage, the deal was made for several reasons. MGM Chairman and CEO Jim Murren says the sale will enable the company to reduce debt and fund CityCenter.
Ruffin will pay $500 million in cash and $275 million in a short-term note at 10 percent interest, with $100 million due 175 days from closing and $175 million due 24 months from closing. MGM Mirage will take back the note to avoid going into public financing. It is expected that Ruffin can easily repay the note through cash flow at the property, which should remain, in that case, debt free.
Treasure Island was originally built by Steve Wynn and Mirage Resorts. Opened in 1993, the resort was Wynn’s second on the Strip. Originally branded with a pirate theme, it was given a $100 million renovation, complete with a more hip, adult theme several years ago by MGM Mirage, which acquired the property when it bought Mirage Resorts in 2000. Now called “TI,” the original pirate ship battle was changed to the “Sirens of TI,” a show on the ships featuring scantily clad women.
The transaction is just the first of what could become a flood of sales of non-strategic assets owned by MGM Mirage and other large gaming companies currently under financial pressure, including Harrah’s Entertainment, Trump Entertainment and Station Casinos.
The problem for these selling companies is that there are few Phil Ruffins out there. Penn National Gaming is relatively debt free and sitting on hundreds of millions of dollars. Former Horseshoe Gaming owner Jack Binion is reportedly interested in getting back into the casino game. The Cordish Company, which has a racino in Indiana and developed the Seminole Hard Rock resorts in Florida, is also a potential buyer. And there are several unidentified companies and individuals who see gaming as an opportunity, but may not be willing to undergo the regulatory scrutiny necessary to buy into the industry.

Tumbling Dice,

Disney ComesTo Vegas

By Casino Connection Staff   Tue, Dec 23, 2008

Disney ComesTo Vegas
Although it may seem that bringing Disney’s Lion King to a Las Vegas stage is a throwback to the failed family-oriented marketing of the 1990s, nothing could be further from the truth. Although the hit Broadway show is certain to be a hit with families, it’s the broad demographics that attend the production on stages all over the world that make it a natural fit for Las Vegas.    
Mandalay Bay President Bill Hornbuckle says the show’s “international appeal will be embraced by Las Vegas locals and visitors alike.”
Hornbuckle brought a taste of the Lion King to town in December to show travel agents and the media why he believes it wll be a success when performances begin on May 2. Three legendary stars of the Broadway production performed several songs from the show (l. to r.): Kissy Simmons, who plays the Nala character; Tshidi Manye, in full costume for the Rifiki character; and Deshaun Young, who plays Simba.

Tumbling Dice,

Baer’s Derrick Approved

By Casino Connection Staff   Tue, Dec 23, 2008

Max Baer Jr. has finally won approval for an outdoor sign at his Beverly Hillbillies casino in Douglas, Nevada.
Baer, who is best know for his role as “Jethro” on The Beverly Hillbillies, has been going back and forth with county officials for the last year to secure a variance for the oil derrick and sign for the front of his $150 million casino project.
The approved design will be 90 feet tall—county code allows a maximum of 30 feet—and will feature two sign faces with a total area of 617 square feet.
As approved, the sign is a drastic departure from what Baer originally proposed: a 200-foot oil derrick and a 2,600 square-foot sign.

Tumbling Dice,

Crown To Close On Cannery

By Casino Connection Staff   Tue, Dec 23, 2008

Crown Ltd. announced last month that it raised $1 billion in financing that it will use to repay debt due in August 2010 to close the company’s purchase of Cannery Casino Resorts.
The announcement means that Crown won’t face any financing issues regarding its $1.75 billion acquisition of Cannery until late 2011.
Once the purchase is complete, Crown will have about $900 million in debt with an interest rate of 5.9 percent.
The company is still working to finalize regulatory approval in Pennsylvania and Nevada.
With the Cannery’s Las Vegas properties currently suffering from the economic downturn, the Meadows Racino in Pittsburgh is perhaps the strongest component of the Cannery portfolio right now.

Tumbling Dice,

Murren Pegged To Replace Lanni

By Casino Connection Staff   Tue, Dec 23, 2008

Murren Pegged To Replace Lanni
With Terry Lanni leaving MGM Mirage, the company’s board of directors appointed COO and president Jim Murren as his replacement.
Lanni suggested Murren for his replacement when he announced his retirement, which was effective December 1.
MGM Mirage majority stakeholder Kirk Kerkorian also praised Murren, saying he is a “multifaceted leader in whom I have the utmost confidence.”
Murren, who will retain his president and COO titles, said he understands the issues the company faces and is comfortable operating within that environment.
His first act was to sell Treasure Island to Phil Ruffin (see story page 12).
He also told attendees at an investment conference that the company has already sold one private airplane, and is looking to sell two others, as well as some land holdings. Even with depressed land prices, Murren said land sales alone could raise about $300 million.
Murren first joined the company in 1998 as chief financial officer after spending more than a decade as an equity analyst and managing director at Deutsche Bank.
He was named company president in 1999, before the company’s buyout of Mirage Resorts. Last year, he resigned his CFO duties last year to take on the role of COO, overseeing the day-to-day operations of the company’s hotel and casino properties.
Lanni will remain involved with the company and serve on the Diversity Committee.

Tumbling Dice,

Reno Casino Closes Doors

By Casino Connection Staff   Tue, Dec 23, 2008

Reno Casino Closes Doors
The legendary Fitzgeralds casino in downtown Reno has been teetering on the brink for a while now, undergoing ownership changes and a number of planned redevelopments.
But after a 32-year run, the property is now closing its doors. It’s not what president Robert Cashell Jr., wanted. In December 2007 he told Global Gaming Business that the property was an integral part of the downtown redevelopment movement in the city. Over the last year, his opinions have changed.
“We certainly didn’t make this decision lightly,” he said. “But given the status of the economy and where downtown redevelopment is headed, we think this property can play a strategic role in that future of Reno and now seems like the right time to undertake that direction.”
What that direction will be is unknown, but it is not likely to involve gaming. The best guess is that a smaller, boutique hotel will open at the site.
The announcement puts about 400 people out of work in a difficult economy. The casinos in Northern Nevada are already hurting as the economic situation has forced many people from the primary feeder market—Northern California—to stay closer to home and frequent tribal casinos instead.

Tumbling Dice,

House On The Hill

By Casino Connection Staff   Tue, Dec 23, 2008

House On The Hill
The Mount Charleston Hotel has a new owner: Real estate developer Siegel Group Nevada Inc. formed a joint venture with Great American Capital to acquire the property.
The first order of business for Siegel is to correct long-standing management and maintenance issues and launch a new marketing campaign rebranding the hotel as the Resort on Mount Charleston.
“Since being constructed, the prior owners of the Mount Charleston Hotel had never been able to successfully market or bring in the amenities needed to attract customers, and were unsuccessful in their attempts to operate the property,” Siegel said in a statement. “Siegel Group plans a major cosmetic renovation to modernize the facilities and correct deferred maintenance issues. The exterior of the property will undergo a substantial renovation with great attention given to maintaining the resort’s current character and architectural features.”
The 64-room hotel will remain open during the renovation process.

Tumbling Dice,

It’s Not Lenny’s, It’s…

By Casino Connection Staff   Tue, Dec 23, 2008

It’s Not Lenny’s, It’s…
Denny’s, one of the largest restaurant chains in America, is coming to Station Casinos’ Fiesta and Wildfire properties.
The first location opened in October at Fiesta Rancho, and based on strong initial response, local franchise owner Mancha Development Company decided to expand its relationship.
“I am extremely excited to be associated with Station Casinos and delighted to bring Denny’s to these popular locals’ entertainment destinations,” said Vince Eupierre, chairman and CEO of Mancha Development Company.
Kevin Kelley, COO of Station Casinos, said the addition of Denny’s coincides well with the rebranding of the Fiesta and Wildfire properties.
“As we recently rebranded both the Fiestas and Wildfire Casinos this year, we recognized a great opportunity and synergy to bring in Denny’s,” Kelley said. “The power and popularity of the Denny’s brand was established by providing good food at a good value, which is exactly what our Wildfire and Fiesta casino guests are looking for.”
In addition to Fiesta Rancho, which is already open, Denny’s will expand to Fiesta Henderson, Wildfire Casinos on Boulder Highway, Sunset Road and Rancho Drive and the Wild Wild West on Tropicana.

Tumbling Dice,

Viva McDonald’s

By Casino Connection Staff   Tue, Dec 23, 2008

 Viva McDonald’s
Las Vegas is home to one of the most unique McDonald’s following the opening of Viva McDonald’s last month. The new restaurant is more than a fast-food joint. It features upholstered chairs, fresh flowers and video screens tuned to the McDonald’s Channel. “Viva McDonald’s, with the McDonald’s Channel, premiere technology features and great staff, will provide a unique and fun dining experience for its guests at a one-of-a-kind restaurant that can only be found in Las Vegas,” said Brian Unger, senior vice president at McDonald’s USA. “This is a destination location for McDonald’s—a must-see restaurant that people will talk about for years to come.”

Tumbling Dice,

Atlantis Rising

By Casino Connection Staff   Tue, Dec 23, 2008

Atlantis Rising
Reno’s Atlantis Casino Resort has a new look, thanks to a makeover put together by Las Vegas-based interior design studio Tandem.
The new look builds on the property’s island theme by using bright colors, limestone walls and dark wood finishes.
“We blended the design of Atlantis’ original spaces with the expansion,” said Tandem principal and partner Kimberly Daoust. “The new spaces stand out and make a bold statement while complementing the existing casino.”
The $62 million expansion project encompasses 34,000 square feet, bringing new life to the 12-table poker room, race and sports book, sports lounge, bar and two new restaurants. The new look of the Atlantis was also extended into meeting and convention space. A 15,000-square-foot spa will open next year.
The new look also comes with a new marketing message.
“We’ve rebranded our property ‘Your all new Atlantis rediscovered,’ and it’s created an exciting buzz around the expansion and redesign,” said property CEO John Farahi. “Atlantis offers exceptional dining choices, world-class casino action, luxury accommodations and, thanks to Tandem, a stunning and eye-catching look and feel that is second to none.”

Tumbling Dice,

Pyrotechnical

By Casino Connection Staff   Tue, Dec 23, 2008

Pyrotechnical
The Mirage unveiled the $25 million upgrade to its iconic volcano last month, and the change from the old is quite noticeable.
While the volcano has always been a must-see attraction on the Strip, its age has been showing in recent years. Passersby weren’t as impressed with the canned volcano sounds and the limited pyrotechnic performance.
The new incarnation of the volcano takes care of those problems with flames that shoot 100 feet into the sky accompanied by a drum score arranged by Grateful Dead drummer Mickey Hart.
Hart joined Mirage president and COO Scott Sibella, Las Vegas Mayor Oscar Goodman, Mirage headliner and emcee Terry Fator and representatives of the Clark County School District for the unveiling.
“The Mirage and our fiery volcano have long been symbols of the energy and excitement Las Vegas offers,” Sibella said. “We recognize that to remain at the forefront of this dynamic destination, the Mirage must deliver trendsetting attractions that excite and entertain, giving our guests a reason to visit again and again.”
The school district representatives were on hand to accept a $5,000 donation from the Mirage, to be used to support music in schools.
“I would not be the musician I am today if I had not had the opportunity to embrace music at a young age,” Hart said. “And now I get to do things like put percussive sound to the image of fire and have it dance around a lagoon.”

Early Out,

God Bless the Cowboys

Mon, Dec 22, 2008

God Bless the Cowboys
Anyone who was in Vegas in October or November was shocked by the absence of customers. Visitors at G2E remarked upon it, and we all felt it. So it was no surprise when we saw the October numbers come out. It was truly brutal. Gross gaming revenues were down by more than 20 percent in every region of Nevada. Places that can hardly stand more bad news saw it in spades. Downtown Las Vegas, Boulder Highway and Reno all saw their business shrink to almost nothing.
But early December brought a trifecta—to Las Vegas, anyway. The De La Hoya-Pacquiao fight, the Las Vegas Marathon and the opening days of the National Finals Rodeo reminded us, at least for one weekend, what Las Vegas has been for so many years. Traffic on the Strip was jammed. Maneuvering around Tropicana between the Thomas & Mack, MGM and Mandalay Bay was almost impossible. The excitement generated by each event was unique and palpable. And the dollars flowing into the casinos, the hotels and the pockets of all the people dependent upon visitors was also evident.
It also reminded us of what we’re missing. Those crowds are few and far between these days. And outside of Las Vegas, those kinds of crowds are almost non-existent. It almost makes you want to give up and pack it all in.
But we can’t, of course. This is our job, our livelihood and, in most instances, our passion. We couldn’t give this up, just like we couldn’t give up eating or breathing. We love this industry. We want to make it work for us, for our customers and for our community.
What’s so frustrating in this situation is that it’s out of our hands for the most part. We can’t control the national economy. We can’t control banks that refuse to issue credit to casino companies. We can’t control fuel costs, which have been acting like yo-yos for the past few months.
What we can control is the way we treat the guests who are still coming to see us. This can turn out to be an opportunity for us to go that extra mile. We need to show the guests that we are truly appreciative of their business. After all, they’ve got plenty of choices about where to vacation and to gamble. Unlike the years when you could only gamble in Las Vegas or Atlantic City, people who show up in Nevada these days have undoubtedly passed by a more convenient gambling location to come enjoy what we have to offer.
The companies operating in Nevada have gone “back to the future” with room and meal deals that harken back to the days when Las Vegas was a bargain hunter’s paradise. While we haven’t seen a great proliferation of single-deck blackjack or those 9/6 video poker machines yet, they can’t be far off. So pretty soon, everyone will be doing the same thing to get players into their casinos.
And the one thing that sets one casino apart from another is the stellar service that is the hallmark of a great operation (and a great employee, as well). Yes, we’ve all heard the lip service about customer service. While it may go in one ear and out the other, now is the time to concentrate on what makes you and your casino or other business special.
Take that extra time to make sure the customer is comfortable. Make sure that he or she knows that you care. Show your appreciation in little ways, like taking a few minutes to talk to them about their families, their jobs or their experience in Vegas. Those are the things that distinguish you and your casino in the minds of the customers. Those are the things that generate the word of mouth marketing that is so valuable, yet so elusive.
Remember, if these people are coming to Las Vegas now, in the dark days, these are the same people who will go home and tell their friends and family what a great time they had in Nevada. While those friends and family may not have the time or money to visit right now, Nevada will be the first place they want to come when times get better, they get back on their feet and leisure time becomes a priority once again.
So next time you see a cowboy, a runner or a fight fan, stop and thank them for making the choice to come to Las Vegas. Tell them you appreciate their business and hope they come back again, real soon!