By Caitlin McGarry   Thu, Jun 04, 2009

As of June 2009, the Las Vegas skyline is incomplete. Industrial cranes hang heavily in the air while half-finished towers loom over their smaller neighbors, and the Strip teems with more construction workers than tourists. To say the city’s largest industry is visibly in flux would be an understatement.

When the housing market crashed in 2007, few could have foreseen the struggle that some of the world’s biggest casino companies would experience in the face of tightening credit lines and nebulous financing. This year, those companies have soldiered on, but not without their share of legal and financial woes.

Three major Strip construction projects, CityCenter, Fontainebleau and Cosmopolitan, are now pushing toward the finish line, leaving employees, executives and bystanders wondering what the economic implications of those properties will be if or when they open.

The CityCenter Saga Thought by many to be a project too big to fail, MGM Mirage’s CityCenter is the grandest project ever undertaken in Las Vegas. The meta resort is a partnership between MGM and Dubai World, and the development process has been anything but smooth.

From construction worker deaths to Harmon tower defects and from lawsuits to financial struggles, the story of CityCenter is almost operatic in scope. Recent developments indicate that the project will be completed and that MGM Mirage will stave off bankruptcy. Of course, in Las Vegas, anything is possible.

CityCenter is comprised of a centerpiece, the ARIA resort and casino, the Vdara condo-hotel, the Harmon hotel and spa, the Veer Towers, a Mandarin Oriental Las Vegas hotel and a retail district called the Crystals. The project will open in phases, beginning with Vdara on October 1 and ARIA in December.

MGM Mirage and Dubai World’s collaboration is now out of the woods, but the two entities struggled to compromise. Dubai began to doubt the ability of MGM Mirage to complete the project, and filed a lawsuit demanding MGM resolve problems in the joint venture. In April, the two parties came to an agreement: MGM will cover any cost overruns the project incurs (beyond the $8.5 billion budget), and Dubai World will pay back loan obligations previously covered by MGM.

After the joint venture seemed stronger than ever, MGM Mirage was forced to deal with its own insolvency. Consulting firm Union Gaming Group recently advised MGM through a stock offering that raised more than $1 billion in exchange for 143 million shares. An additional $1.5 billion was raised through a private offering.

“They’re in better shape than they were in three months ago, and that’s reflected in their share price,” said William Eadington, professor of economics and director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada-Reno. “I’m not sure if they’re out of the woods yet. I think the tension we saw there a couple months ago was a reflection of not only the CityCenter project, but the distress both MGM Mirage and Dubai World were feeling. My suspicion is they certainly reduced the likelihood of it. If the economy continues to drag, it’s going to continue to put downward pressure on MGM’s company.”

Bill Lerner, former Deutsche Bank analyst and current partner of Las Vegas-based Union Gaming Group, said he thinks MGM Mirage is on the right path, though it may need to look at selling other properties. The company put up the Mirage and the Bellagio as collateral in its drive to avoid bankruptcy, so those two properties may not be for sale anytime soon.

“I believe bankruptcy is off the table for two reasons: MGM has obtained debt covenant relief from lenders, and the company has resolved near-term maturity risk in conjunction with its recent capital raise,” Lerner said. “I don’t think [the Mirage and Bellagio] are off the table entirely. If MGM wanted to sell either of these, it would need to replace them in the collateral package. We still believe the company would consider non-core asset sales, such as Michigan, Illinois, New Jersey, Mississippi [Tunica and Biloxi].”

Though the future of MGM Mirage may not be as rosy as some would like to think, CityCenter is closer to completion than its counterparts further north on the Strip.

Cosmopolitan Countdown Analysts did not expect the Cosmopolitan Resort and Casino to become the victim of bankruptcy, failed partnerships and an uncertain future, but the project is now on life support, with savior and owner Deutsche Bank struggling to shape the resort.

The Cosmopolitan broke ground in late 2005 on a strip of land between CityCenter and the Bellagio. Developer Ian Bruce Eichner and his firm, 3700 Associates, LLC, envisioned an upscale rock and roll resort, and saw the project through to the beginning of 2008, when Eichner’s company defaulted on a $760 million loan from Deutsche Bank. The bank took over the 3,000-room project during foreclosure proceedings, but has yet to find a partner to oversee the property’s gaming and hotel operations.

The Cosmopolitan has endured an identity crisis since Nevada Property I LLC (an extension of Deutsche Bank) took control of the in-progress resort. Throughout 2008, a variety of companies discussed operating the property for Deutsche Bank, but those talks were unsuccessful.

The bank even discussed giving the Cosmopolitan to MGM Mirage and providing financing for the CityCenter project, but that proposal fell through in March 2009. The following month, Deutsche Bank announced its partnership with the Hilton hotel chain. Hilton was prepared to launch its Denizen brand of upscale hotels, and had hoped to bring the brand to the Cosmopolitan. In mid-April, Hilton revealed that it would be suspending its Denizen brand due to allegations of corporate espionage from Starwood Hotels & Resorts Worldwide Inc.

Deutsche Bank is still searching for a partner—after all, banks are in the business of financing casinos, not owning or operating them.

“They’re bankers, not hoteliers or casino operators,” Eadington said. “It depends on how low a price they have to offer to dispose of them. It’s a microcosm of the dilemma of banks in general. These are toxic assets.

“I think the concern of Deutsche Bank is if they continue to own Cosmopolitan, it could be terribly distracting on management’s attention. It could possibly be a negative cash flow operation. They’re in a tough situation and obviously they would like to have someone to come over and take over ownership. That would be the best they could hope for. Short of that, they’re stuck with capital invested in a company that is nonperforming at present.”

Another of the bank’s issues with its property is the room décor, which was given a rock glamour theme by original developer Eichner and then remodeled by real estate company Related Cos. Deutsche Bank executives were unhappy with the second, more muted look, and went back to square one to redesign the resort’s interiors.

The redesign slowed the construction process on the $3 billion property, which is expected to open in June 2010. Though Deutsche Bank has taken a $653 million loss on the property due to declining property values and numerous setbacks, the bank is determined to see the project through to the end.

Financing Fontainebleau While Deutsche Bank is guiding the Cosmopolitan through to completion, the bank has also provided financing to Fontainebleau Las Vegas, which has led to the property’s current troubles.

This spring, Fontainebleau officials filed suit against 11 of its lenders, who refused to release additional financing due to an alleged loan default. Fontainebleau denies defaulting on its agreements.

In May, the property, which has been developed as a partnership between Fontainebleau Las Vegas and Turnberry Associates, amended its lawsuit, accusing Deutsche Bank of conspiring to sabotage Fontainebleau because of the bank’s desire to see the Cosmopolitan succeed. Fontainebleau also alleged that Deutsche Bank was preventing the resort from coming to an agreement with its other lenders, including Bank of America and Royal Bank of Scotland. Without the additional $770 million in financing, Fontainebleau cannot be completed.

“I would be very surprised that [Deutsche Bank is] doing this to reduce the supply in the marketplace, which is the implication,” Eadington said. “It’s not at all unusual for a bank to be involved in a market like Las Vegas in multiple projects. You’ll find quite a few banks that were involved in multiple projects. They view the projects on their individual merits and then the market as a whole. Deutsche Bank did not want, but inherited the situation at Cosmopolitan. There has to be a legal basis for Deutsche Bank and the other banks in the consortium to withdraw their financing.”

Fontainebleau is slated to open in October 2009, but without the remainder of its financing, the resort has been forced to lay off both on-site and corporate employees, putting the future of the project in jeopardy. Fontainebleau is also defending itself against a lawsuit from consulting firm CCCS International, who has accused the resort of firing the firm unfairly. Fontainebleau denies the charges.

At the end of May, Fontainebleau Las Vegas CEO Glenn Schaeffer, former executive of Mandalay Resort Group, left the company amidst its efforts to obtain financing. At this point, it is unclear what direction the property will take if its legal and financial tangles are not resolved.

“You have projects that are 90 percent or more toward completion, and there’s no chance whatsoever of success if there’s no financing to complete,” Eadington said. “Whatever strategy the bank is undertaking on its side, I doubt they’re doing to it prevent Fontainebleau from succeeding.”

Both Fontainebleau Las Vegas spokesman Lance Ignon and former Deutsche Bank analyst Lerner declined to comment on Fontainebleau’s lawsuit against its lenders.

The Aftermath As CityCenter, Cosmopolitan and Fontainebleau join the ranks of elite resorts in Las Vegas, the question remains: How will these new projects affect the city, the state and the gaming industry as a whole?

The three hotels are expected to add approximately 12,000 rooms to the market between them, and with room rates being aggressively lowered to attract tourists during the recession, some industry insiders are concerned that CityCenter, Cosmopolitan and Fontainebleau will essentially flood the market with too much product. The end result could be a disaster for Las Vegas’ hospitality sector.

“Obviously, it’s going to be good news for consumers,” Eadington said. “You’re going to increase product, and historically if you look at periods of multiple openings, they have typically created a real upward tick in demand. This time around, it’s different. This has been such a significant recession, and has had such a disproportionate effect on the new Las Vegas. Palazzo and Wynn have had no response on the market. This has to be chilling.”

The only other alternative would be to leave the resorts closed upon completion, which Eadington said would be a far more damaging prospect.

“It’s bad timing, but there’s not much you can do about it when you start a project five years ago,” he said. “A nonperforming $10 billion asset costs you roughly $1 billion in interest alone. You want to transform them into performing properties. Supply and demand may fall out of balance.”

Though there is a risk that the new resorts will cannibalize the older products, there are no other projects currently in the pipeline, and the industry may be able to absorb the “excess capacity,” Eadington said. However, that does not preclude the possibility of older casinos undergoing renovations to expand their properties without tapping huge credit lines.

“I think it will be years before new development projects with typical financing begin in Vegas, despite the reduction in land, commodity, and labor costs—a function of the supply glut that needs to be absorbed,” Lerner said. “Renovations appear more likely.”

Indeed, it appears as though the age of the meta resort is over before it ever really began. The problem was not ambition—Las Vegas is known for its forward-thinking entrepreneurs and successful innovations—but the unrealistic, grandiose financial schemes that landed several of the those very entrepreneurs in hot water.

“We’ve seen the last of the $10 billion-plus projects,” Eadington said. “Both CityCenter and Cotai Strip have demonstrated the difficulty of a project this large. The gestation period is too long. From planning to market, it takes too long. The market can change. Coordination of a project of that size is impossible. A project of that magnitude is unwieldy from a logistical perspective. The financial community is no longer going to consider the gaming industry the favored child.

“The challenge for Las Vegas as it ages is can its properties stay fresh? Will it stay as popular as it has been? Part of its history of that role is that it’s always been so new. It’s going to lose that newness over the next decade or so. So creativity in marketing is necessary… [boosting] entertainment, convention opportunities and other activities that will keep it fresh in [visitors’] minds. It has a good history of rising to that challenge.”

By Greg Jones   Thu, Jun 04, 2009

There was a time when the soft glow of neon illuminated the night skies in Las Vegas. The soft glow of pinks and greens and blues helped make Las Vegas one of the most photographed cities in the country. It was what helped turned night into daytime, as Elvis sang. What got started along Fremont Street quickly spread to the Strip. It wasn’t long before signage became as much of a part of the casino’s brand as anything else.

As Las Vegas moved forward, neon signs are being passed over for LCD screens—glorified televisions—that blare advertising slogans and commercials in their harsh white light. From their perches along the Strip, above the topless joint in Downtown Las Vegas and above the city itself on the M Resort lightship, these flickering signs announce the dawn of a new age for Las Vegas.

The iconic signs are gone. Today’s visitor is too sophisticated to care about a giant neon cowboy, let alone find it fascinating. If they even care at all about the outside of a property—beyond the “talent” sitting poolside—is open for debate, as there has been little outcry about the current trend of casino wraps.

Certainly some neon survives in older properties like the Flamingo or all of the casinos in the Downtown area. And there is a movement that will guarantee that the neon in Las Vegas lives on forever through the Neon Museum and a partnership with the city of Las Vegas.

Trend Setter

The first neon sign showed up in Las Vegas in 1929 at the Oasis Cafe. The next year, the Las Vegas Club added neon to its facade, but it wasn’t until the Young Electric Sign Company opened a Las Vegas branch in 1933—two years after gambling was legalized—that neon really took hold.

One of YESCO’s most prominent signs was a large vertical neon sign that was added to the Boulder Club in 1946. That sign essentially touched off an arms race of neon that ended up filling the desert sky with light.

“They didn’t put too much thought into this kind of stuff then,” said David G. Schwartz, director of the Gaming Research Center at the University of Nevada-Las Vegas. “I think they just said, ‘Hey, the guy down the street has a big sign, make mine bigger.’ They weren’t really thinking artistically.”

Soon Fremont Street was buzzing with neon signs above the Apache Hotel, the Golden Nugget, the Horseshoe and the Frontier Club. In 1951, the Pioneer Club added the city’s most visible resident—still visible to this day—in Vegas Vic. The 40-foot cowboy with moving cigarette and waving arm was the unofficial greeter for Las Vegas visitors.

“They burned through thousands of feet of neon in the name of healthy competition,” said Danielle Kelly, operations manager at the Neon Museum in Las Vegas.

The late ’50s and early ’60s marked a turning point where companies like YESCO, Western Neon and AdArt starting getting really creative.

“They just built them really big and got really creative and the signs really were the brand of the hotels,” Schwartz said.

Properties like the Mint on Fremont Street, and on the Strip at the Frontier, Stardust, Sands and the Dunes, were as much about the neon sign out front as anything else. When the Stardust opened in 1958, it was little more than a dark box with little other purpose of design than holding up its giant neon sign—and staying in the background as the galactic theme poured light onto the Strip.

By the end of the ’60s, neon signage was essentially all there was.

“Then, in the ’70s with gas prices and energy prices rising, they tended to do more mirrors and indirect lighting,” Schwartz said. “There were good business reasons behind it.”

As an example, he points to the porte cochere at Bally’s, which opened as the MGM Grand in 1973. The area relies on reflective surfaces to up the wattage. As the energy crisis continued, operators got smart to the idea that it was cheaper and better to use backlit plastic and colored light bulbs. It marked a turning point: an unofficial end to the neon age.

“You really don’t see it much anymore, and it’s a shame,” Schwartz said. “Neon is very warm; it’s analog. There is a lot of digital stuff out there now, and it looks great, but it’s just not the same.”

Remembering the Past

While a lot of the historic neon signs are gone, they are certainly not forgotten. The non-profit Neon Museum has been collecting signs and keeping them from being relegated to a less visible location like a scrapyard or landfill. With more than 150 signs dating back to the 1930s, the outdoor exhibit is home to a number of icons, including the Silver Slipper, the original atomic font Stardust letters as well as the sign, Coin Castle, the Aladdin genie lamp and the recently acquired Moulin Rouge.

“There is something special about neon,” said the Neon Museum’s Kelly. “It has the ability to capture your imagination.”

With a mission of preserving Las Vegas’s neon history, the museum is working to restore as many signs as possible. It’s a daunting task for the non-profit group, because the price of restoration can range from anywhere between $5,000 and $50,000 per sign.

A number of restored signs can be seen along Fremont Street, including the highly visible Hacienda Horse at the intersection with Las Vegas Boulevard. There will soon be more classic signs being restored and returned to Las Vegas Boulevard, thanks to a federal grant and a partnership with the city.

Las Vegas Boulevard has been designated as a scenic byway, allowing the city to apply for special grants. It has received money to start restoration of a number of signs—starting with the Silver Slipper—that will line the street between Sahara and Washington avenues.

Additionally, the Neon Museum will use some money to restore the iconic La Concha lobby to serve as both the visitors center for the Las Vegas Boulevard Scenic Byway, as well as a lobby for the Neon Museum.

Currently, visitors can tour the boneyard by appointment only. The location is a strong draw, attracting a large number of visitors from America and abroad. While it is particularly popular with design and architecture students and fans, Kelly said everyone who comes tends to have a similar experience.

“It seems to elicit a unique emotional response in everyone who sees it,” she said. “And there is something special about being in such close proximity to these massive signs.”

A Look to the Future

While some are looking to preserve the analog past, the digital age is changing the world’s approach to everything. From music to television to methods of communication, everything these days is nothing more than a complex string of zeroes and ones. The digital revolution is even creeping into the casino world.

Neon long ago fell out of style—at least the reach-for-the-sky approach from the glory days of casino signs—but with new techniques, casino operators have been able to maintain that same level of over-the-top signage. LCD screens allow casinos to constantly change up their message. By comparison, the waving welcoming arm of Vegas Vic—a must-see at the time of his introduction—is very primitive. As can be seen with M Resort’s lightship, operators aren’t even limited to targeting drive-by audiences with their signs, and can instead take the signs to the people.

But perhaps the most impressive technological advance has been the one that allows the entire facade to become a sign. Harrah’s Atlantic City wrapped its Waterfront Tower in 33,000 linear feet of LED fixtures, making the world’s largest video screen. This technology is also being incorporated into Fonatinebleau Las Vegas.

“I think now the trend is the using the whole building as a sign,” UNLV’s Schwartz said. “The Waterfront Tower in Atlantic City, Fontainebleau, that whole building is going to turn into a 60-story sign.”

Schwartz said it’s hard to say if this technology will catch on as a trend.

“If Fontainebleau looks as good as it does in the renderings, that is going to be really amazing,” he said. “I think there will always be some people who push the envelope, but I think there is something lasting about neon, so I don’t think it will ever go away.”

By Caitlin McGarry   Thu, Jun 04, 2009

The morning of May 1, Las Vegas residents awoke to tragic news:Entertainer Danny Gans had passed away just before dawn at his Henderson home. The Henderson Police Department announced that 911 dispatchers had received a call at 3:44 a.m. that a man was having trouble breathing. Paramedics arrived at Gans’ home at 3:51 a.m. and pronounced the performer dead at the scene.

The news came as a shock to family, friends and fans alike. Gans was known for being health-conscious, and though he had high blood pressure, son Andrew Gans told Las Vegas Review-Journal columnist Norm Clarke that his father was taking medication to control the hypertension.

Gans’ initial autopsy proved inconclusive (indicating that the cause of death was not an obvious one, like a heart attack or a brain aneurysm), and the Clark County Coroner’s office has not yet released the toxicology test results.

As news of Gans’ death spread through the entertainment world in the early days of May, several of his colleagues publicly mourned the loss of one of the Strip’s brightest stars.

“Danny Gans will not only be remembered as a Las Vegas entertainer, but as a man who loved his family, loved God and loved the city of Las Vegas,” his manager, Chip Lightman, said in a statement. “Danny has been my partner and dear friend for over 18 years. I will truly miss him. My thoughts and prayers go out to his wife of 28 years, Julie, and his three children, Amy, Andrew and Emily.”

Local celebrities like Terry Fator, Wayne Newton and Lance Burton sent condolences to Gans’ family, as did Nevada Senators John Ensign and Harry Reid.

A Full Life

Though Gans was only 52 when he died, he accomplished more in his short lifetime than most people could ever hope to achieve.

Gans grew up in Torrance, California, with dreams of being a professional baseball player. He attended Mount San Antonio College in Walnut, California, and then transferred to Cal Poly San Luis Obispo, where he became an All-American and met his wife Julie. They married in 1981. After college, Gans played in the minor leagues, but an injury abruptly ended his baseball career.

Gans had always delighted friends and family members with his comedic abilities and impressions, but it wasn’t until after his injury that Gans began focusing on a career in entertainment. He toured the country, singing and developing impressions of famous entertainers. In 1995, Gans developed a one-man show called “Danny Gans on Broadway: The Man of Many Voices.”

Tired of being away from his wife and three children, Amy, Andrew and Emily, Gans decided to settle down. Las Vegas came calling, and Gans moved his show to the Stratosphere in 1996. He performed at the Strip hotel for seven months before signing with the Rio. He played there for three years.

Fan and friend Steve Wynn convinced Gans to headline a show at the Mirage, where he performed for 10 years. It was at the Mirage that Gans became a legend, performing impressions of artists like Dean Martin, Frank Sinatra and Elvis Presley night after night.

Gans never pursued a mainstream singing or acting career, preferring instead to focus on his Las Vegas show and spend time with his wife and children. He even turned down a sitcom proposal from Aaron Spelling to avoid a long commute and time away from his family.

Recently, Gans had begun making plans for the next step in his career. Just before his death, he finished his autobiography and a new album, and was incorporating more contemporary impressions into his new gig at Wynn’s Encore resort.

Saying Goodbye

On May 21, more than 1,000 guests filled the Encore Theater to pay their last respects to Danny Gans. Steve and Elaine Wynn spoke at the memorial, as did Mayor Oscar Goodman, Donny Osmond, two of Gans’ pastors and his three children.

During the service, Goodman proclaimed May 21 Danny Gans Day, calling Gans “the quintessential entertainer, and to the city of Las Vegas he was a wonderful partner.”

Gans’ family, friends and colleagues have all spoken of the singer’s love for Las Vegas. The performer donated more than $2 million to charitable causes in Southern Nevada. His family requested that donations be made to Gans’ favorite charity, the Nevada Childhood Cancer Foundation, in lieu of flowers. Gans hosted the annual Danny Gans Champion’s Run for Life to benefit the foundation.

According to the Las Vegas Sun, when Flamingo headliner Donny Osmond spoke at the memorial, he touched on the relationship Gans had with Las Vegas and with his fellow residents.

“He mingled with the average person,” Osmond said. “I was on a service elevator by myself when a janitor walked in. He had a mop in his hand. He was filthy from working and he was tired. He recognized me and, with tears in his eyes, the janitor said, ‘I’m going to miss Danny Gans.’ That meant more to me than any one of his colleagues saying they would miss Danny. He was able to reach everyone.”

What Happens Now

Las Vegas is still reeling from the loss of Danny Gans, and his empty theater at Encore is a constant reminder that someone who should still be here is gone.

Eventually, Wynn Resorts will have to fill the hole left by Gans’ passing. Until then, the company has booked Larry King for a one-night performance June 19, and Beyonce will be holding court from July 30 to August 2.

As for which entertainer will carry on in Gans’ grand tradition, the answer is unclear. Ventriloquist Terry Fator has drawn favorable comparisons to Gans due to his impersonation skills and his residence in Gans’ old theater at the Mirage. Fator had met Gans just once, years ago, but he told the Las Vegas Sun that he admired Gans’ career and hoped to be like him one day.

“I saw his show for the first time four or five years ago. I sat in this theater and thought, ‘I want to do that,’” Fator said. “He really was an incredible entertainer, one of the best I’ve ever seen. If his legacy lives through me, I’d be the most honored person you’ll ever know. I respected him as a person, as a family man and as a representative of Las Vegas.”

Las Vegas’ greatest entertainer may be gone, but he will never be forgotten.

Rest in peace, Danny Gans.

By Casino Connection Staff   Thu, Jun 04, 2009

The entire staff at Santa Fe Station deserves recognition in light of a recent event in which team members built a number of bicycles for children at the property's partner school, H.P. Fitzgerald Elementary. The exercise demonstrated the value of team work in assembling the bike, but more importantly, it exemplifies the Station Casinos commitment to community service. The exercise not only gives bikes to some deserving students—they were selected based on their commitment to service as well as test scores—but it also helps create the next generation of community-oriented adults.

By Caitlin McGarry   Thu, Jun 04, 2009

As casinos struggle to stay afloat during the current recession, top-notch customer service is the key to retaining guests. Twin Creeks General Manager Jay Morrison knows the secret to long-term success better than most gaming company executives—after all, he has specialized in customer satisfaction since 1972.

That was the year Morrison moved from Wisconsin to the southwest to attend the University of Nevada-Las Vegas.

“I got tired of shoveling my car out of the snow all winter,” Morrison said. “I think I was shoveling for the third time one day, when I went in the house and said, ‘Get me a map. I want to see where it’s hot and they have jobs.’ And this was it.”

Throughout his school years, Morrison worked at the original MGM Grand, before the company transferred him to Reno to open the northern Nevada MGM. Morrison eventually moved back to Las Vegas to work at the Las Vegas Hilton, then Station Casinos.

How he came to manage the Silverton Casino Lodge’s premier restaurant involved a bit of a detour. Morrison had retired from the gaming industry, but was coaxed out of retirement by his former employers at MGM. The company had just purchased Primm Valley Resort & Casino, and wanted Morrison to manage food and beverage operations at the resort’s three casinos.

After five years at Primm Valley, Morrison tired of the 520-mile commute and joined his former Sunset Station colleagues at Silverton’s Twin Creeks last year. He said he prefers working at the locals casino to his time on the Strip.

“I got tired of not having the regular, repeat guests, and getting to establish relationships and a rapport with people who live here that you see all the time,” Morrison said. “Being with Stations, and even more so here at Twin Creeks, we have such a nice, regular clientele—people we’ve gotten to know, people that we see twice a week, five times a month, once a month—we see them over and over again.

“That’s what I like the best about it, is getting to know your clientele. As you get to know people, they get to feel more comfortable coming here, and they start ruling out other places to go. And we see them even more. I feel like I host a dinner party every night and then they send me a check at the end of the week.”

Morrison’s customer service philosophy is reminiscent of times gone by, when guests were greeted by name and seated at their favorite table. Morrison moves around his restaurant with ease and grace, creating an atmosphere of luxury at locals’ market prices.

Shortly before Morrison joined the team at Twin Creeks, Silverton commissioned a $3.7 million remodel of the high-end restaurant. Twin Creeks became the picture of elegance, with a high-end menu to accompany it. Locals loved the new look, but were not so happy with the $62 per person check. Morrison helped guide Twin Creeks in a new direction that is more conscious of the economic hardships their patrons face.

“We did some good business for a period of time, but the local people thought we were a little fancy schmancy for local folks, and our prices were a little fancy schmancy, too,” Morrison said. “So we re-inaugurated what we called the Twin Creeks classics, and that is a throwback to the Twin Creeks prior to the remodel. We still have the full a la carte section, so you can go that route if you like, but the new classics menu added back a filet with a salad and a choice of two side dishes, instead of all a la carte, at a really nice price.”

With the new classic menu, guests can now feast on a dinner of petite prime rib with a salad and two sides for $17—and Morrison’s presence at Twin Creeks only adds to that value.

By Greg Jones   Thu, Jun 04, 2009

Maybe it’s been said in other reviews, but the only objectionable aspect of Bob Dylan’s latest album, Together Through Life, is Dylan himself.

While the Bobfather has never had the smoothest of singing voices, recent albums have shown a deterioration in his voice that has him sounding more gravelly than ever (as comedian Patton Oswalt might describe it, “Tom Waits gargling hot asphalt”). There are times when Dylan just sounds terrible.

The voice really is a shame, because musically, the album is remarkable. It continues Dylan’s trend of exploring Americana; it’s got something of a roots-rock feel to it, although the persistent accordion gives it a strange Creole sensibility at the same time, particularly in the closing track, “It’s All Good.”

Together Through Life feels like something one might wander upon by accident, like an impromptu performance that was fortunately recorded for the sake of posterity. Dylan produced the record himself, and Together Through Life is available as a one-CD version containing only the new material, or as a three-disc deluxe version with additional songs and a DVD interview with Dylan’s first manager, Roy Silver.

Music fans and Dylan devotees will have no problem stomaching Dylan’s voice, but it would be hard to create a new convert with Together Through Life. Musically, the album is perfect, but the lyrics are often inane—which is unfortunate and a bit surprising since Dylan collaborated with Grateful Dead lyricist Robert Hunter.

But with more than 45 albums under his belt, a reputation as a musical legend, multiple Grammy awards and even an Oscar, it’s easy to give Dylan a little slack when he shows signs of wear, provided he continues to put out quality albums like Together Through Life.

By Patrick Roberts   Thu, Jun 04, 2009

When people decide to gamble—and they are rational and intelligent people—they usually understand what they’re getting into. Most will do a little research or even make some logical observations about the games they intend to play.

For example, few would think that the “Big Six” wheel would make a good gamble, and they would be right. That game has some of the worst odds for the player in the house. Roulette—at least as it’s played in Nevada—isn’t  much better. Now craps, baccarat and blackjack, they’re different. Depending upon the bets or the strategy, they can be some of the best games for the player—but still favor the house substantially.

But what do you do with slots? Nothing really. There is no way to tell which slots pay more than others. Unless you’re talking about video poker.

By learning the right games to play, the right paytables and the correct strategies, video poker can be the best bet in the house. And in the right circumstance, a player can even get an edge over the casino.

Bob Dancer, probably the most reputable video poker expert in the business, has come out with a new book that examines the game in a new way and with a new attitude.

Video poker used to be easy. Just find a 9/6 Jacks or Better game and you could be happy. (The “9” refers to the payout for a flush, while the “6” refers to the full house payout; most casinos rarely offer machines that are better than 8/5 and can sometimes be as bad as 6/5).

But today, there are an amazing variety of machines and paytables. Jacks or Better, Deuces Wild, Joker Wild, Double Bonus and Double Double Bonus, and variations like Multi Strike poker or Quick Quads are just a few of the games reviewed by Dancer in this book. And they all present opportunities for the “intelligent” beginner who can tell the difference between the come-on and the true value.

Dancer reviews the games in a non-technical manner and a friendly demeanor, giving the reader an understanding of why these games are the best. But he’s a strict taskmaster when it comes to strategy. Stick with the strategy and you’ll have the best chance. Stray just a little and you become just like every other sucker on the casino floor.

So if you want to get the most from your casino wagering, get Dancer’s book, read it and apply. You won’t be a loser, that’s for sure.

By Joe Legato   Thu, Jun 04, 2009

Now, here’s a game that will bring any Nintendo fan back to his roots. After a 15-year hiatus, the classic Punch-Out!! franchise is back with Next Level Games’ release for the Nintendo Wii.

As in the previous two Punch-Out!! games, you assume the role of Little Mac as he boxes a series of increasingly difficult and outlandish fighters from around the world. Fans of the series will be happy to see that most of the boxers in the game are from the originals, such as the wobbly Frenchman Glass Joe or the German smasher Von Kaiser. Even your personal trainer Doc Louis returns, though his real interest always seems to be getting you to join Club Nintendo!

Though Punch-Out!! gets a lot of its game play and style from its predecessors, its adaptation onto the Wii offers some cool features. The Wii controllers allow players to jab and punch like a boxer, and the revitalized graphics create a fun cartoon experience.

Another new feature of this Punch-Out!! is a multi-player option where players can now take on each other head-to-head in a split-screen setting. If one player starts doing really well in the round, then his character will become much larger and the setting will change to an intimidating single-player screen view.

The best part about Punch-Out!! is the nostalgic experience it brings. There are very few owners of the original Nintendo who did not play the first version of this game, and seeing all of their favorite characters in a new cartoon 3D mode is really neat.

That isn’t to say that newcomers won’t enjoy the game. The same learn-as-you-go style and downright funny characters that made the original popular return in the new Punch-Out!! So whether you’re getting back into a game that you haven’t seen in a while or just trying something new, Punch-Out!! is definitely worth a shot.

By Robert Rossiello   Thu, Jun 04, 2009

Liam Neeson is not your typical action star. With roles in movies like Schindler’s List and Rob Roy, as well as his Zen master turn as Qui-Gon Jinn in Star Wars, this big, brooding Irishman has brought gravity and depth to his diverse characters.     

Neeson has an intense on-screen presence that makes him a natural leading man. This serves him well in the entertaining Taken, a formulaic action thriller that is elevated by Neeson’s acting. He plays Bryan Mills, a retired government operative—a “preventer” is his cryptic job description—who has hung up his holster to spend more time with his daughter, Kim (the bubbly Maggie Grace). Having neglected his marriage and his daughter’s childhood in service to his country, Mills is looking to make up for lost time. His steely ex-wife (played by Famke Janssen in an underwritten role) thinks he’s too closed off and restrictive. To prove her wrong and not disappoint his 17-year-old daughter, he reluctantly allows Kim to travel to Paris for the summer, where she is abruptly kidnapped by Albanian thugs to be sold into an international white-slavery ring. So much for being an overprotective dad.      

The plot of Taken is simply a contrivance for Mills to show off his many lethal skills. Working his way through a series of bad guys, he draws steadily closer to the whereabouts of his daughter.

Yet for all the pat Hollywood mayhem—the car chases and intricate hand-to-hand combat—the picture works.The direction is fast-paced and convincing. The screenwriters have hit on the perfect premise: a parent’s worst nightmare. Neeson’s anguish and determination are palpable, and he draws you into the adrenaline-fueled story.

And make no mistake, Neeson kicks some serious butt in this movie. It’s a thrill to watch this disciplined actor give in to the dark side. Who knows? This may be a new beginning to an already impressive career.

By Caitlin McGarry   Thu, Jun 04, 2009

If Prince and Marvin Gaye had ever recorded a duet, the results would have been similar to soul singer Maxwell’s hits. Maxwell was integral in the founding of neo-soul in the latter half of the 1990s, and his spiritual songs became a touchtone of the genre.

His debut, 1996’s Maxwell’s Urban Hang Suite, burned slowly up the charts, and Maxwell slam-dunked with his MTV Unplugged EP, which featured covers of Nine Inch Nails’ “Closer” and Kate Bush’s “This Woman’s Work.” In 1999, the singer scored big with the single “Fortunate,” and released his fourth album, Now, in 2001.

Neo-soul is no longer the well-carved niche it once was, and Maxwell has been on hiatus since the release of Now, but the singer has announced that a revival of sorts is in the making. Maxwell plans to release an album called Black Summers’ Night in three parts over three years, beginning with Black on July 7 of this year.

By Caitlin McGarry   Thu, Jun 04, 2009

When Taking Back Sunday emerged on the music scene in 2002, pop-punk was replacing boy band pop as the genre du jour. With its debut album, Tell All Your Friends, Taking Back Sunday combined a darker, more traditionally emocore edge with pop sensibilities and hardcore roots.

Seven years later, Taking Back Sunday is still rocking. Through lineup changes and the public’s evolving tastes, the New Jersey band is proving itself relevant with a new album of original material, called New Again, to be released early this month.

There have been a few shakeups since Taking Back Sunday’s last release, 2006’s Louder Now. That album was the band’s most popular, debuting at No. 2 when released. After the success of Louder Now, back-up vocalist Fred Mascherino announced he would be leaving TBS to pursue solo success. Mascherino’s vocals perfectly complemented lead singer Adam Lazzara’s, and fans were disappointed when he left the band.

But with a new back-up singer in tow, New Again is expected to be the band’s most energetic yet. Taking Back Sunday will be touring throughout the summer to support its latest release.

By Caitlin McGarry   Thu, Jun 04, 2009

Loretta Lynn staked her reputation as one of the gutsiest artists in country music long ago. From her beginnings as the genre’s lone feminist singer in the 1960s to her 21st century partnership with White Stripes founder Jack White, Lynn has been nothing if not a bona fide rebel.

Lynn came from humble beginnings as a coal miner’s daughter from Van Lear, Kentucky. Her childhood became the subject of her most famous song, “Coal Miner’s Daughter,” which inspired her autobiography and an Oscar-winning movie starring Sissy Spacek as Loretta herself. Lynn’s experiences as a child bride with six children were also fodder for her songs, though Lynn remained married to her husband from the age of 13 until he died 50 years later.

Throughout her career, Lynn sang tales that were often based on her own life: stories that most women, especially women from the South, could identify with and relate to. From divorce to contraception to the Vietnam War, Lynn took on every subject under the sun with fierce honky-tonk flair.

Her most experimental work came after her husband’s death, when Jack White produced Lynn’s comeback album, Van Lear Rose, in 2004. The odd pairing produced some of the best songs in music that year, earning Lynn two Grammys and a fresh start. A new album of original material is slated to be released later this year.

By Caitlin McGarry   Thu, Jun 04, 2009

The year was 1990, and a rapper in parachute pants used a Rick James sample to create one of the most successful hip-hop singles of all time. MC Hammer’s “U Can’t Touch This” is a 1990s musical landmark, and Hammer’s rise and fall in the years since the single’s success have been well documented.

With Please Hammer, Don’t Hurt ‘Em and its follow-up, Too Legit to Quit, Hammer dominated the hip-hop music scene. He had little credibility on the streets, and critics doubted his actual talent, but Hammer’s dance skills were unrivaled, and his ability to make old-school songs relevant again was heralded. Hammer’s career eventually collapsed, but his songs are still ubiquitous, even today.

Though a comeback is not necessarily on the horizon, Hammer (nee Stanley Kirk Burrell) has been releasing music through his own digital music label, Fullblast Playhouse, and is expected to release a new album sometime this year.

In the meantime, Hammer will appear as part of the University of Nevada-Las Vegas’ Remember When Concert Series with Tone Loc and Young MC this month.

By Caitlin McGarry   Thu, Jun 04, 2009

This year marks four decades of music industry success for legendary Spanish singer Julio Iglesias. The multilingual star is celebrating his longevity with a worldwide tour, which is a fitting nod to his popularity across the globe.

Iglesias has recorded 77 albums in more than a dozen languages, and has sold more than 300 million albums around the world. As one of the top-selling artists of all time, the Spanish-born artist is truly a national treasure.

Though he records mostly in Spanish, Iglesias was also popular in the United States throughout the 1980s. His son Enrique has furthered the Iglesias legacy in English-speaking countries with his own bilingual career. Iglesias’ last album, Romantic Classics, was released in 2006 to great fanfare. While fans may have to wait a while longer for a record of original material, true Iglesias aficionados will be delighted by the singer’s two-night stop in Las Vegas on his anniversary tour.

By Caitlin McGarry   Thu, Jun 04, 2009

In 1969, a band called Blind Faith released one self-titled album before splitting up. Two of its members, Eric Clapton and Steve Winwood, have remained friends in the 40 years since Blind Faith’s break-up.

Last year, the pair teamed up for a three-night gig in New York City. The shows proved so popular that Clapton and Winwood are embarking on a 14-city tour this summer.

Clapton has a long history of musical partnerships, from his early days in the Yardbirds, Cream and Derek and the Dominos to his later work with B.B. King. Winwood has also been a team player, lending his skills to bands like the Spencer Davis Group, Traffic and Latin Crossings.

Throughout their careers, Clapton and Winwood have retained a strong friendship that will be celebrated on this summer’s reunion tour.

By Greg Jones   Thu, Jun 04, 2009

It’s difficult to pigeonhole Penn and Teller. The only truly applicable label one could use would be performer. Their act combines magic and illusions with morose and twisted comedy. It’s great fun, and audiences love the act.

The duo of Penn Jillette and Raymond Teller have been entertaining audiences throughout the United States since the ’80s. They’ve enjoyed a successful run in Las Vegas and have been headlining the aptly named Penn and Teller Theater at the Rio since 2001.

In addition to their live act, the duo also work on an Emmy-nominated show on Showtime, and they have put out three top-selling books.

Penn Jillette recently spoke to Casino Connection about the magic behind the duo.

You’ve got a lot of things going on—touring, television show, writing, performing in your venue at the Rio—how do you keep all those things straight and find the time to do all of that?

I guess we’re motivated by greed. Teller and I are obsessed with time management. So we break down our time really carefully. I break my day down into 10 or 15 minute hunks. I also have to have time to spend with my children.

We’re one of the very few shows that writes new material and puts it in. Cirque is out of Montreal; Blue Man is out of New York; and we’re out of Vegas. They don’t do the show themselves and we do. So when we get an idea for something new, we can just put it in. We put in about five or six new bits a year since we’ve been in Las Vegas; we’ve done five and a half or six hours of new material. And that same amount of 12 years all the other shows have done an hour and a half of material.

That leads to another question I had about whether you ever find it getting repetitive.

Well we don’t change the show—this is a very important distinction to me, but it may not matter to anyone else—we don’t change the show because we’re bored with it. I’m very happy doing stuff I wrote 30 years ago. I believe that part of being a professional and part of being a performer is being able to find a way to love the stuff you’re doing every single night.

I love being able to go out and do a bit I’ve done 5,000 times before and just be thinking if I can get the breath in a better place; see if I can do a line in one breath instead of two. And I’m able to just think about that because everything else I have where I want it.

The next night I think about something else. I love that.

We have a lot of friends who are old-timers in the variety acts and they started doing their act when they were 16, and when they’re 60, they’re still doing the same act. There is a level of quality you see in a bit that has been done 20,000 times that you can’t possibly get with any shortcuts.

So we try to keep old stuff in as well, but the problem is not that we’re bored, but we have new ideas and that we get really excited about wanting to have in the show. We can’t just wait for the bits to go away, so I can say with more pride than I say about anything else, the stuff we take out of the show is stuff that we still love doing.

So ideally, if you could, you would keep adding 30 minutes to the show?

Yeah, if we had an infinite amount of time and an audience with infinite patience, I would love to be doing an eight-hour show every night.

There is also stuff, you put a new bit in that is really talky, then you’ve got to take out another talky bit so we have to put in a solo Teller bit that we haven’t done in 15 years. Every small change in the show to make sure the tones are right and sneaky stuff with the pocket loads and making sure the balance is right, we have to change the whole show. So if you come to the show one week and the next week we’ve only written one new bit, you’ll actually see eight new bits because you’ll see seven things that we pulled out from 10 years ago and we’ve moved some stuff around to get the new bit to swing.

Do you have a favorite thing? The television show? The headlining act in Las Vegas? The touring?

Without any hesitation, our favorite thing is the live show. One of the things that makes the live show so wonderful and such a joy to do is the fact that we have a non-monogamous plate. We do so many other things that it always makes the live show just a joy to come back to. Again, most other entertainers in Las Vegas don’t do anything else.

There is a cliché, a change is better than a rest, and I think there is a lot of truth to that. You really do get a great deal, you can feel like your live show is not the drudgery of going to work but the joy of coming home.

You know, you find that if what you’re doing is repetitious day by day, doing stuff around that that is very different and challenging can make coming back to that repetitious quality a plus instead of a minus; or as they say in the computer business, a feature not a bug.

You are also involved in some charity work in the community. What do you do?

Every year in the summer we do AFAN (Aid for AIDS of Nevada), and we do a walk for that that we match all the funds. Our team made more than $60,000, so Teller and I put in more than $60,000, and the whole walk ended up over $400,000—it’s not research, it’s just people who need help now.

Then in December we do the 12 bloody days of Christmas where we work really hard to get the blood drive going and it changed December from the weakest month of the year—which is why we put our effort there—into the strongest month of the year for Nevada.

Why do you feel it is important to do so, anyway?

I don’t know. “Important” may be too presumptuous of a word. We like doing it. It feels good to help out a tiny bit, the little bit that we can and it really takes, if you break it down in 15-minute hunks, it really takes less time than you might think at first blush.

You are pretty outspoken for a Vegas headliner. Have you ever gotten in trouble with Harrah’s over anything you have said? Are they pretty relaxed and aware of who you really are? Do they ever tell you to take a hint from Teller?

It’s just not very popular to come out and say you’re a cynic. It’s wonderful that we have had the plum gigs in our lives. We played off-Broadway in a show we produced three times. We have played Broadway twice. We’ve toured all over the world and I can say without hesitation that the best bosses we’ve ever worked for is Harrah’s.

When you play Broadway, you know there is millions of dollars riding on you and you have a contract that says Penn and Teller will do whatever the f--- they want and no one has any control over you, but you still feel the investors breathing down your neck and worrying. Harrah’s, their policy on Penn and Teller is that it’s the Penn and Teller Theater and we put a show on in there and if people are showing up and people are enjoying the show, that is the extent of their involvement.

To anyone who has worked in the arts, for any who is serious about creating, that kind of complete unbridled freedom, although a little frightening, is also breathtakingly liberating.

You ask anybody and they’ll tell you owning your own show off-Broadway is the most freedom you can possibly have and I will answer, “No, it isn’t. Try working for Harrah’s.”

Harrah’s has been very clear, and I don’t mean implicit but explicit, that what I do and say off-stage is none of their business, which, of course, is not true. It is their business in a very real sense, but taking the point of view that it’s not is about as high-road and pure freedom you can possibly find.

By Dave Bontempo   Thu, Jun 04, 2009

The Wranglers spoiled their fans with three consecutive 100-point seasons, an ECHL record. Their coach and general manager, Glen Gulutzan, made winning look routine. He was even named the ECHL coach of the year three seasons back.

This year was more of a struggle and thus revealed the true nature of Gulutzan’s grit. That the Wranglers made the ECHL semifinals was a strong statement about the season. This was not the juggernaut team of the past. ECHL rules capping the number of veterans at four discourages dynasties. Teams must rebuild every so often and the Wranglers faced that chore this year.

They were basically a .500 team and were in no man’s land much of the year. By December, they knew they would make the playoffs because a team folded. For three months, they played for pride alone, but still managed to turn up the heat in the playoffs.

They battled through two playoff rounds, won important overtime games and prevailed twice at home in game 7s. Whether one cites the improved defensive discipline or the playoff-enhanced power play, Gulutzan found a way to push the team beyond its natural limits.

By Dave Bontempo   Thu, Jun 04, 2009

One of boxing’s most unique, steadily rising companies has emerged from Las Vegas.

TKO Boxing Promotions has developed a concept dating back to boxing’s original glory years: its Hometown Heroes to World Champions series, which has grown to 26 shows this year, scours the country in search of local talent.

While building a fighter, it builds a market.

“You go into a market and find two or three guys who can really fight and sell tickets,” said TKO President Chet Koerner, a Houston native who made Las Vegas the company headquarters when it launched operations last year. “You run the shows at break-even or a small loss if necessary, but you develop the fighter and the town for boxing. There were studies done that said you needed to go run six shows in a city to start making money. We can do it in two or three. Bring the same fighters back, get people talking about their performance and you come back with good fights that people want to see.”

And then fortune may intervene. A fighter may emerge from the local markets, proceed through regional areas and finally become a televised commodity and/or win a world championship. That’s when the big payback occurs.

“You can’t develop a fighter if you can’t sell him in his hometown,” Koerner said. “That’s the place you start. What’s happened in boxing over the years is that a lot of promoters take TV licensing money, stack it on top of casino money and never sell a ticket.”

Many industry sharks even wait while someone like Koerner does the heavy lifting and then they steal the fighter. That’s the biggest fear of local promoters when they look to build fighters. But Koerner, connected with well-respected industry matchmaker Chris Middendorf, has managed to retain rights to high-flying boxers. TKO Promotions can befriend boxing’s biggest hitters by, for example, placing one of that organization’s fighters on its local cards. The practice encourages cooperation down the road.

Rolando Reyes provides an example of the TKO rise. The California fighter, whom the organization developed ties with through his management,  recently won a world title and is negotiating with Oscar De La Hoya’s Golden Boy Promotions to appear on an August card.

Three months ago, TKO signed former amateur standouts Cortez and Mickey Bey. Both are from Cleveland. Both are managed by Cameron Dunkin, who also guides boxing champions Kelly Pavlik, Steven Luevano and Nonito Donaire. A partnership has been forged.

As it barnstorms the country, TKO looks to stage a bout in its backyard, Las Vegas, in September or October.

“We’ve been everywhere,” Koerner said, laughing. “We did a show at a barn in Iowa. We’ve been at a catering hall in Glen Burnie, Maryland, a concert hall here, a small arena there. Usually, we wage bouts in venues from 2,000 to 7,000 people. What we’ve seen from it is that boxing really is recession-proof. At the end of the day, it’s entertainment, and if you price it right, you are going to do well.”

Neighborhood fights and local rivalries remain areas boxing has under-served in this get-rich-quick age. After a few bouts and a spotless record, a fighter’s management often looks to cash in on a pay-per-view event. Most promoters won’t have the patience to run several shows at or near the profit level, but Koerner’s group will ultimately develop fighters and gain its share of televised dates.

One of them occurred in February, in Reno, selling out a nice-sized venue. Area stars Jesse Brinkley and Joey Gilbert had a bona fide rivalry. It was parlayed into a strong event.

Boxing has a short list of lucrative promotional companies. Golden Boy and Las Vegas-based Top Rank Inc. are serious players, and a power vacuum exists with the declining influence of Don King. TKO Promotions is building, block by block, in an effort to join them. It’s boxing growth, grassroots style.

Sound the Drumbeats

It’s officially safe to become excited over the next Vegas blockbuster. Floyd Mayweather Jr. and Juan Manuel Marquez square off July 18 at MGM—after a press tour that includes Los Angeles, New York and London.

These are two of the sport’s ultra-elite professionals. Mayweather retired undefeated, but was goaded back first by Ricky Hatton, whom he beat last year, and now Marquez, a tough, savvy, inside veteran. Like a handful of Mayweather’s opponents, Marquez has the toughness to score well if he gets inside. Mayweather, however, always appears unflappable. Look forward to this one.ú

By Caitlin McGarry   Thu, Jun 04, 2009

Sunscreen: Slathering on the sunscreen is any desert native’s priority during the summer. Luckily, manufacturers produce the protective lotion in a variety of SPFs and scents. From a light moisturizer with a high SPF (Neutrogena Healthy Defense Daily Moisturizer SPF 45 for $12.99) to a sporty version that won’t slide off with water or sweat (Coppertone Sport Sunscreen Lotion SPF 70 for $13.99), there are plenty of options for sun worshippers to choose from.

Summer reading: Every mainstream media outlet is set to hype a list of beach reads, making it easy to find a good book to take on vacation (or to the couch). National Public Radio has recommended books like Joanna Scott’s Follow Me and Gillian Flynn’s Dark Places, while AskMen.com is advising its male visitors pick up reads such as Pride and Prejudice and Zombies by Jane Austen and Seth Grahame-Smith and The Yankee Years by Joe Torre.

Swimsuit: Retro swimming gear is in style this season, so beachgoers and pool loungers should look for suits in saturated colors like cerulean and plum. Ladies can pick up suits with 1950s silhouettes (think Marilyn Monroe) instead of tiny bikinis, while guys can scout for fitted trunks rather than baggy board shorts.

Other summer necessities include a beach towel, a picnic basket, a medium-sized cooler and plenty of refreshing (preferably tropical) beverages.

By Caitlin McGarry   Thu, Jun 04, 2009

The sun provides essential nutrients, such as Vitamin D, and has also been shown to treat seasonal affective disorder. However, for many people, prolonged sun exposure can lead to sunburns and even skin cancer.

Those with high risk factors for skin cancer should be particularly careful of extended periods spent in the sun. A person with light skin color, freckles, blonde or red hair and blue or green eyes has an increased chance of getting skin cancer, though anyone who is frequently sunburned increases their risk exponentially. According to the Center for Disease Control, frequent sunburns early in life (before the age of 20) could also lead to cancer.

In order to potentially prevent skin cancer, people with high risk factors should avoid direct sunlight when its rays are strongest, from 10 a.m. to 4 p.m., and should cover exposed skin if outside during midday. Using sunscreen is essential in avoiding sunburn; a minimum SPF of 15 is necessary to block UV rays, and should be reapplied after extended periods of swimming or sweating.

People often forget their necks and scalps when applying sunscreen, and so it is best to wear a hat to shade those areas while outside. The CDC warns against tanning, either outdoors or at a salon, because tanning beds and sunlamps contain strong UV rays that could easily damage the skin.

During the Southern Nevada “monsoon” season, Las Vegas residents should remember that UV rays can easily penetrate cloudy skies, and so precautions are still necessary to protect skin.

Taking steps to ensure safety during the summer will make it more enjoyable—and in Las Vegas, there is always a cool spot indoors for a local.

By Caitlin McGarry   Thu, Jun 04, 2009

Though June has just arrived, summer descended upon Southern Nevada weeks ago. Temperatures climbed into the triple-digits seemingly overnight, which comes as no surprise to Las Vegas locals. For those who reside in the arid desert, summer is all about survival.

Hot, Hot Heat

June kicks off the official start of summer, and there are several precautions Nevadans should take to protect their health. Summer in this city can often be dangerous for people who do not guard themselves against the elements. Sunburns and heat exhaustion are common afflictions in the midst of summer, but young and elderly alike can be severely injured or even killed by the searing heat.

One of the most dangerous heat-related problems is heatstroke, or heat exhaustion, which typically occurs when an individual has been performing physical labor or exercise in a hot environment. Heatstroke is usually accompanied by dehydration, as the body essentially overheats without water in such a situation, and heat coping mechanisms such as sweating are lost.

According to the Mayo Clinic, symptoms of heatstroke include a rapid heartbeat, shallow breathing, high or low blood pressure, an inability to sweat, personality changes, dizziness, fainting, headache and nausea. Children and senior citizens are at high risk for heatstroke, as are those who drink alcohol in the heat and people with cardiovascular disease.

To treat heatstroke, the affected person must be moved to a cool, shaded area and covered with damp sheets or sprayed with cool water. Drinking cold water will also help ward off heatstroke.

A lot of Las Vegas residents forget they need to drink more water in the summertime to replace moisture lost via sweat, but experts recommend drinking two glasses of water prior to any physical activity to remain hydrated throughout the day. Some think thirst is a good indicator of dehydration, but as people age, thirst becomes a delayed reaction and could result in dehydration. People who have diabetes are also at a higher risk of becoming dehydrated.

Another common side effect of summer is the seemingly inevitable seatbelt burn. Metal belt buckles become scalding hot when parked outside all day, and they can cause severe burns if near skin. To prevent seatbelt burn, Las Vegans should use sunshades in their windshields to block the sun’s rays and prevent them from heating the metal. People can also use wrist sweatbands to cover buckles during the day.

The summer heat can even be deadly, especially for small children. In Las Vegas alone, hundreds of incidents of children being left alone in hot cars have been reported in recent years, and in many cases, those children have died. In 2005, state legislators passed a law making it a misdemeanor to intentionally leave children alone in cars. Still, plenty of parents mistakenly lock their children in cars during the summer, and the incidents usually occur because the parent had their mind on other things or forgot the child was in the car. If an individual is exiting a car, he or she should make it a point to check the car for children, animals or other living beings before locking the doors.

By Caitlin McGarry   Thu, Jun 04, 2009

Candy-colored walls, a rack of aprons and tiered stacks of cupcakes on glass counters greet Las Vegas residents who step foot into one of the Cupcakery’s two Valley locations. The experience is a bit surreal, like being transported from a modern metropolis to 1950s suburbia.

Called the “cupcake queen” of Las Vegas, entrepreneur Pamela Jenkins has created something of a time warp with the advent of her cupcake shops. Though Jenkins is the picture of a 21st century woman, her philosophy on sugar-laden treats is a throwback to simpler times.

“I think there’s a simplicity about cupcakes that kind of reminds people of years gone by,” she said. “The product is homemade; we use fresh butter. We use really high-quality ingredients that people were using 20 or 30 years ago, before everything became so chemically enhanced. Food as a whole has changed so much in this country in the last 50 years.”

It was this change that led Jenkins to open her own business. As a Texas native transplanted to Las Vegas by way of New York City, Jenkins noticed that Sin City’s inhabitants were drawn to bright lights and big chain businesses. Alongside a couple of colleagues at her then-job as an administrative assistant at the Golden Nugget, Jenkins conspired to bring down-home cooking to Southern Nevada.

Years of baking experience and a savvy business plan paid off when the Cupcakery opened to rave reviews at the beginning of 2006. The shop became an instant hit among locals and visitors alike, drawing notable out-of-town fans like Britney Spears and Fergie. Jenkins has also been charged with creating cupcakes for resident artists like Cher, Bette Midler and Santana.

What keeps celebrities and residents coming back for more are the cupcakes themselves, which sell for $3 apiece or $32 per dozen. The shop’s most popular cupcake is the Southern Belle, which has a red velvet cake base and cream cheese frosting topped with red sprinkles. Jenkins, who calls her brand “the Tiffany of the cupcake world,” said Pete Wentz of Fall Out Boy favors the Southern Belle.    

“I think it’s all in the taste,” Jenkins said. “Of course, I’m biased, because they’re my cupcakes, but they’re all based off scratch recipes. The red velvet’s been in my family for 50 years. That’s our bestseller. I really think you could put this up against any cupcakery in the United States, and my feeling is, our flavors would come out on top.”

Jenkins has whipped up dozens of recipes for flavorful, homemade cupcakes, including the Boston Dream, made with yellow cake, filled with Bavarian crème and topped with chocolate ganache; the Kir Royale, made with raspberry cake and topped with champagne frosting; the Grasshopper, made with dark chocolate cake and covered with mint chocolate frosting; and the Good Morning, Cupcake!, made with yellow cake and topped with a cinnamon swirl and a sugary glaze. The secret to Jenkins’ concoctions is simply her own hunger.

“I like to eat a lot, so it’s whatever I’m craving,” she said. “The Orange Julius cupcake came out last August, and I named it after my son. I wanted to have a cupcake after him. The day he was born, I called the store and said, ‘We’re going to have an Orange Julius cupcake. Here’s what’s in it; make me one!’”

Jenkins said she is also inspired by seasons, which is why there are a variety of holiday specialties, such as Mimi’s Pumpkin, Gingerbread Chick and Peppermint Bliss.

The Cupcakery has since expanded beyond its eastside location in Las Vegas. Another store opened in Summerlin a year after the original opened its doors, and Jenkins, who now co-owns the chain with her uncle, set out to open a few shops in Texas. Competition has sprung up around Las Vegas, and the mainstream media has heralded the new “cupcake trend.”

“As a business owner, the trend has really gone crazy,” Jenkins said. “People are opening up cupcake shops all over the place. I don’t know if everybody will last. I don’t know if you can necessarily go out and open a shop that sells cupcakes if your product isn’t really good. You’ll probably make it for a couple years, but it’s tough to say if 100,000 cupcake bakeries, or however many it is in the last year that opened, will all make it. Who knows?”

Despite the current crop of competing cupcakeries, Jenkins’ shops are still growing by leaps and bounds. On an average day, the Cupcakery sells more than 1,000 cupcakes, and sells upwards of 3,000 on weekends and holidays. The Southern girl with a penchant for entering her baked goods in the county fair now owns one of the most successful local businesses in Las Vegas.

“I personally don’t want to franchise it out right now,” Jenkins said. “I think we have a good enough concept to do that, but it’s really important to me, and it’s really important to my uncle in Texas as well, that we protect the integrity of what we do. I don’t want it to become the McDonald’s of cupcakes. That’s never what I set out to create.”

The Cupcakery

9680 S. Eastern Ave., Suite 100

702-207-2253

7155 W. Lake Mead Blvd.

702-835-0060

Hours:

Monday-Wednesday—8 a.m. to 6 p.m.

Thursday-Friday—8 a.m. to 8 p.m.

Saturday—10 a.m. to 8 p.m.

Sunday—Noon to 6 p.m.

By Dave Bontempo   Thu, Jun 04, 2009

Sharon Pennington

Human Resources Director, South Jersey Industries

Sharon Pennington has her own version of the phrase “law and order.”

A law degree, coupled with a sense of compassion, helped the New Jersey native serve two interesting, orderly stints during a frenzied period here. Pennington worked for five Players Club properties in Las Vegas, returned home in the mid 1990s and came back to head Human Resources at Caesars Palace during its difficult transition from 1998 to 2000.

“There are only 600 employees to look after now,” she laughed, “not 7,000.”

Pennington continues to prosper back home. She became a major executive for area utility giant South Jersey Industries and was recently named one of the New Jersey’s top 50 female executives by NJBIZ magazine.

Interestingly, it was what happened after college and the acquisition of the law degree that forged her gaming career. Legal expertise brought her to the casino business via Players, and she learned gaming through common sense and osmosis.

“Both ends of the training have served me well,” Pennington said. “The legal background helps you ask direct questions, to be analytical and to cut right to the chase of the matter. The hotel casino business helps you become real good at dealing with change, moving quickly in response to market changes.

“Caesars Palace provided a good test of that.”

More than most people would have wanted. Constant ownership changes involving Sheraton, Starwood and Park Place Entertainment sent waves of uncertainty through the Caesars ranks a few years ago. As the liaison between management and employees, Pennington saw both sides of the battle lines.

“It was a very challenging time,” she recalled. “The proudest thing about that time was I felt we made sure that the Caesars brand was represented well with the employees. The company is a strong representative in gaming, a premier property, and a lot of us were anxious that it was going to get lost in the merger with Park Place Entertainment. I like to think I played a role in the fact it did not.”

Human Resources provides an interesting, if overlooked, method of advancement. A sharp individual can bring all sides of a company together. Perhaps no other department gets such an accurate reading of company morale, and Pennington believes more elite executives can rise from the ranks of HR.

“You can help management and employees get on the same page,” Pennington said. “One of the nicest things you experience is helping an employee reach another level. We had many team members come to us when they were distraught or trying to overcome something. It may have been a case where a person felt stuck in a position, or passed over for a promotion.

“You take a look at the problem, get an idea of why it shook out the way it did and give the employee a strategy for moving forward. It might be something like taking a step back to step forward. Sometimes you want to tell someone to volunteer for a project outside their area, work some extra hours to get it done and that might be the path forward. It’s great when someone comes up to you a couple years later and thanks you for getting them on the right track.”

Pennington applied the same strategy in her own navigation. After graduating Glassboro State College (now Rowan University) with a sociology degree, Pennington obtained a degree in Labor and Employment Law from Rutgers Camden University. That led to legal work for an Atlantic City firm representing Players Club, which then beckoned her to Nevada. It ultimately caused dice roll No. 1, moving the family. Pennington served five nationwide properties for the organization.

The dice roll became a front-line winner. Pennington thrived in the legal department, particularly with labor relations and union organization issues. Returning to New Jersey, she later entered the Caesars family by becoming the director of HR in its Atlantic City property. Before long, Vegas beckoned again, with dice roll No. 2, and 7,000 employees.

“It was eye-opening because I had two children, school age, and in Atlantic City casinos are not integrated with day-to-day life,” Pennington said. “There are no slot machines in the drug store. In Vegas, they were everywhere and here I am with these little kids.

“For them it was a blast. We stayed at Caesars Palace and actually lived there for a period. There are friends I have made in Vegas who will be friends until the end of time. Yes, we missed the snow and the color green out there, but I would never trade it.”

While viewing casinos as exciting and unpredictable, Pennington sees consistency between gambling and other industries. Ultimately, executives are in the people business.

“Be direct with people,” she said. “Give them the chance to succeed both for you and for themselves.”

By David Schwartz   Thu, Jun 04, 2009

Over the years, many stars have gotten their debut in Las Vegas. Some go on to mainstream success, while others, just as talented, remain closely associated with the lounges and showrooms of the Strip for the rest of their careers.

The Kim Sisters, from their arrival in Las Vegas in the late 1950s, were one of the town’s most popular acts, and they found a measure of broader fame through their numerous appearances on the Ed Sullivan Show.

The Kim Sisters—Sookja, Aija and Mia—first came to the United States in February of 1959 to perform as part of the China Doll Revue at the Thunderbird casino on the Strip. They were three of seven children born to Kim Hae-song, an eminent Korean conductor, and Lee Ran-Young, one of the country’s best-known singers. 

Tragedy struck the family when Mr. Kim was captured and killed by North Koreans during the country’s civil war, but the sisters remained strong, performing to support their family.

Each sister could sing and play several instruments, talents that made them ideal lounge performers. After their month-long engagement at the Thunderbird, the Kim Sisters moved to the Stardust, where Ed Sullivan was wowed by the show. Although the group didn’t have a record, radio airplay or even a recording contract, he brought them to New York to appear on his wildly popular variety show. The group ultimately appeared 22 times on the show.

Sullivan gave the girls the break they needed, as they found themselves on magazine covers and in the news, even though interviews were difficult. The sisters knew only limited English, and though they performed country and rock and roll songs in perfect English, they had no real idea of what they were signing, having memorized the words phonetically.

The Kim Sisters continued to perform in Las Vegas. They had memorable runs at the Flamingo and at the Hilton, where they performed in the lounge while Elvis Presley headlined the showroom. After Aija’s death in 1987, the sisters no longer performed as a group, though Sookja—today Sue Kim Bonafazio—continued to perform for a time with two of her brothers. 

The Kim Sisters are notable Las Vegans, not only because of their musical accomplishments, but because they were among the first Koreans to call the city their home—which makes them pioneers of both entertainment and society.

SOURCE: Kim Sisters Collection, UNLV Special Collections

David G. Schwartz (www.dieiscast.com), is the Director of the Center for Gaming Research at the University of Nevada Las Vegas. He is the author of Roll the Bones: The History of Gambling.

Thu, Jun 04, 2009

For the last few years, the “go-to” gaming analyst in the industry has been Deutsche Bank’s Bill Lerner. He was the first gaming analyst to leave Wall Street and actually live in Las Vegas,  a move that gave him respect and inside knowledge of the gaming industry. Several important gaming executives, including MGM Mirage’s Jim Murren and Pinnacle Entertainment’s Dan Lee, have cut their industry teeth as gaming analysts, and Lerner was one of the best.

Earlier this year, Lerner, along with Deutsche Bank colleagues Rich Moriarty and Grant Govertsen, left the investment bank to start their own research and consulting firm, Union Gaming Group. The group started with a bang, advising MGM Mirage through a difficult transition and helping to line up part of the $2.5 billion in financing the company needed to reduce debt and finish the CityCenter project.

Casino Connection Publisher Roger Gros sat down with the principals from Union Gaming Group at their Las Vegas offices in May.

Casino Connection: You three have been on Wall Street for many, many years. Why did you decide to leave Deutsche Bank and start to head up your own company?

Rich Moriarty: This is something we’ve talked about for over a year now. Luckily, Deutsche Bank brought the three of us together. Given the state of what’s happening on Wall Street and what’s going on in the gaming  industry, we felt like it was a terrific time for the three of us to get together and go out on our own.

Deutsche Bank is a big player in the gaming business. Without the weight of that name behind you, do you expect to have the same kind of access and will you be able to gather the same kind of information you had in the past?

Bill Lerner: That was something that we certainly contemplated when we were anticipating a departure from Deutsche Bank. There are certain resources that we’ve had the benefit of that we won’t have anymore. The early indications so far have been very encouraging. From an access perspective, I don’t envision any real issue. In fact, many of the folks in different aspects of the industry have been in to talk to us about how we might be able to work together differently than in the past. Many institutional investors that are our clients have been very supportive of what it is we have in mind. We haven’t run into any issues. It’s a fair consideration, but so far, so good.

There’s a suggestion that we’re going to see a lot of sales of individual properties from the big companies like Harrah’s, MGM, Las Vegas Sands, Station, etc. Do you believe that’s going to happen to any great extent, and what will be the trigger that really starts that?

BL: I think there’s going to be fragmentation to resolve balance sheet issues. I think that will result in a number of new gaming companies being formed, or will result in the rounding out of portfolios for existing gaming companies.

There are a lot of folks who think they can essentially steal properties from some of these troubled gaming companies. But what I think is going to be challenging with that mindset is that it doesn’t resolve any leverage issues for any of these gaming companies to sell assets cheaply enough to be attractive for many of the folks who want to buy gaming assets.

There’s a handful of companies with great reputations in gaming that are looking to capitalize, like Wynn, Penn National and private individuals with a lot of capital that have been out of gaming for some time but have expertise and the ability to get licensed.

Do you think the regulation that has been submitted in Nevada that will allow companies to own up to 25 percent of a casino without going through the onerous licensing system there will help loosen things up a little bit?

BL: At the end of the day, Nevada Gaming Control and the Gaming Commission have the same desire and fiduciary responsibility in mind. Whether they might make some process less onerous or not, they want to protect the state and the reputation of the state when it comes to this industry. If they can be more practical in their structure, then I think that’s what they have in mind.

Let’s talk about Las Vegas specifically. Is the problem that we see with the gaming companies and the resorts on the Strip that their revenues are dramatically lower, or is it the debt load that the big corporations have taken on at this point?

BL: I’d say the overwhelming majority is debt burden, and the minority is macroeconomic issues that have impacted consumer spending. The latter is transitory, I hope and think; but the former, the balance sheet issues, are self-imposed and need massive attention.

I don’t think you’ll likely see new development projects anytime soon, but when they are putting shovels in the ground five or 10 years from now, I don’t think you’ll see the shovels go in without the projects being fully funded.

Everybody’s anticipating the opening of CityCenter now that the financing issues have been mostly resolved, but isn’t this another potential problem for competitors, and even for MGM Mirage, since it’s going to vastly expand the room inventory on the Strip?

BL: Yeah. With CityCenter, let’s say you have 6,000 incremental rooms, primarily at the higher end, on the base of 150,000 rooms or so. One more room being added to Vegas right now is one too many. So it’s going to be a problem for room rates citywide.

There’s a whole other discussion about whether the return on invested capital there will ever exceed the cost of capital. But what’s more important at this point is that it’s all relative. Most investors attribute no cash flow benefit from the opening of CityCenter, even if there is cannibalization with their own portfolio, the net of it, we think, will be incremental cash flow for MGM Mirage.

The opening of the property, the prospect of selling or closing some residential inventory, and maybe there’s a strategy to get that done, and the elimination of the negative carry, the huge debt burden for the joint venture associated with, finally with cash flow, might be incrementally positive for the MGM shares.

But it’s certainly not going to help the high-end competitors, the Caesars, the Wynn and Las Vegas Sands to a large extent.

BL: It’s interesting because CityCenter, despite the budget, despite the physical plant, the size of it, the casino square footage is actually small. As gaming is supposed to be part of the return profile there in a relevant way, we’ve got to assume that the high-end will be a focus.

Since it’s a 50/50 joint venture, the treatment or the strategy for MGM is delicate. You would be cannibalizing to some degree your existing high-end exposure, and giving half of that benefit to your joint venture partner. That’s a real delicate proposition.

Let’s talk about the locals market. Do you think that is going to rebound to some extent?

Grant Govertsen: We do think it’s going to rebound, maybe a little bit slower than the Strip, even when you consider the number of rooms that were originally thought to be coming online are not going to be coming online now. So that has a pretty big impact on unemployment. I believe the numbers are roughly two-and-a-half new jobs for every room that’s developed on the Strip. With the number of these casinos not being developed, you’re probably talking about tens of thousands of new jobs that won’t be created. The return to normalcy in the locals market is going to take a little bit longer than on the Strip.

Is that a function of the down economy in the locals Las Vegas market that that’s going to take awhile to rebound?

GG: Yeah, because obviously you’ve got some pretty nasty residential issues that we’re working through now as well, and one of the highest unemployment rates in the country, so there’s a lot of negative things going wrong right now.

BL: The dynamic in the locals Las Vegas market is still unique. We believe that it’s a cyclical issue that the locals Las Vegas market is enduring right now, of course exacerbated by some of the specific issues Las Vegas has to deal with, which is the housing crisis and the higher-than-average unemployment. But once the national macroeconomic environment improves, I think you’ll start to see a migration back to Las Vegas, especially if California becomes more fiscally onerous, which they are teeing up to be.

If I was a buyer of casino assets, while it’s pretty sexy to look for assets on the Strip, I would certainly suggest to folks with capital and a desire to own a faithful gaming profile, that the Las Vegas locals market, if you can pry an asset away, has perhaps the best return profile to offer.

By Casino Connection Staff   Thu, Jun 04, 2009

Las Vegas Sands Corporation became Pennsylvania’s eighth active casino operator last month, when the Sands Casino Resort Bethlehem opened the doors to its casino.

The casino opened its 3,000-machine slot floor, four restaurants, a food court, a pub and two entertainment lounges. In addition to the slots, which are expected to draw heavily on a North Jersey/New York market that is relatively close, a major draw is expected to be the Chop House, a new restaurant by famed chef Emeril Lagasse.

The legendary Sands logo—the same one that was on the iconic Las Vegas property and the Sands Atlantic City—now graces the middle of an industrial bridge, apparently left over from the property’s former life as the Bethlehem Steel Works.

Much more of the property’s history will eventually be on display when the entire resort is unveiled. The master plan includes a hotel, a retail center, a convention complex and an industrial museum that will display blast furnaces and other equipment from the legendary steel plant. Those plans are currently waiting out the economy.

“Those projects will continue as soon as the economy turns and the credit markets improve,” said Bob DeSalvio, president of the Sands Bethlehem, in an interview with Philadelphia’s ABC TV affiliate. “We thought that was a prudent step to take, but we will also honor our commitment to build out those facilities when the timing is right.”

Local government officials were on hand to welcome the new casino. The city of Bethlehem stands to earn $1 million this year in host fees, and $9 million annually when the full project is up and running.

By Casino Connection Staff   Thu, Jun 04, 2009

The New Jersey Division of Gaming Enforcement has sent a report to the state Casino Control Commission last month recommending that the approval requested by MGM Mirage of a partnership with Pansy Ho, the daughter of Macau gaming magnate, Stanley Ho, be denied. Pansy Ho and MGM Mirage have partnered on the MGM Grand Macau, a $1 billion casino resort in the Chinese gambling enclave, which opened in 2007. In gaming jurisdictions where it is licensed, MGM Mirage was required to obtain approval for the partnership. Four states—Michigan, Illinois, Nevada and Mississippi—have already granted their OK, but New Jersey had spent many months conducting a complete investigation.

Casino Control Commission Chairwoman Linda Kassekert told Global Gaming Business that she and her staff have not yet read the report, because it had just been delivered, but was “likely” to hold hearings on its findings.

The contention of the DGE report is likely to be an ongoing connection between Pansy Ho and her father, Stanley, who held a monopoly on gaming in Macau for many years. When Portugal turned over its former territory to China in 1999, the Chinese government opened up gaming to international companies. Three concessions were granted at that time: Stanley Ho’s SJM, Wynn Resorts and Galaxy Entertainment. The MGM Macau operates under a sub-concession granted to Pansy Ho from SJM.

In a statement released following the report by Ho, she said, “I and my advisers will need time to read and consider the contents of the report and decide how best to respond to it.”

In most jurisdictions, Stanley Ho would not be able to be licensed because of reported connections to the Triads, Chinese organized crime groups. Pansy, and her sister and business associate, Daisy, have admitted to receiving some of their funding from Stanley, but deny he wields any influence over them or their business operations.

Some of the consequences for MGM Mirage could be giving up its license in New Jersey should it decide to continue its relationship with Ho in Macau. MGM owns 50 percent of the Borgata in Atlantic City, which is operated by partner Boyd Gaming. The company also owns 50 percent of MGM Grand Macau (l.), which it operates for the partnership. The company could choose to relinquish the Macau investment and retain its New Jersey license.

MGM Mirage had announced a $5 billion MGM Grand Atlantic City and had begun the planning and design process until the declining economy and sinking revenue in Atlantic City put a stop to the plans. The company insists that the project is merely on hold and it will resume design and construction once the economy turns around. But should it decide to focus on Macau rather than Atlantic City, the project would be effectively dead.

In Nevada, just prior to the Gaming Control Board’s decision to approve the relationship between Pansy Ho and MGM, the company announced a huge development in Jean, about 30 miles south of Las Vegas near the proposed international airport. The project included a new casino resort and thousands of homes. Several months later, the project was quietly dropped, citing the bad economy. Company officials deny there was any link between the two events.

Dennis Neilander, chairman of the Nevada Gaming Control Board, told the Las Vegas Review-Journal that New Jersey and Nevada have different laws and interpretations of laws when considering the suitability of business partners. He assumes that New Jersey simply weighed the facts differently than did his agency.

“If there was evidence not provided to us, then there would be a concern,” Neilander told the newspaper. “Otherwise, it would seem that the Division of Gaming Enforcement came to a conclusion using the same facts but applying New Jersey law.”�

By Casino Connection Staff   Thu, Jun 04, 2009

City-led economic development efforts in Reno are giving casino operators some hope that they will be able to better compete with tribal casinos in California.

A new baseball stadium and a number of new businesses in the downtown area are bringing people near the casinos, and operators now need to work on bringing them through the doors.

The Silver Legacy Resort Casino is essentially land-locked. Unable to expand outward, general manager Gary Carano is forced to better utilize the floors on his property to keep customers coming back.

One strategy is to use more slot machines that run a number of games, freeing up space on the gaming floor.

“Today’s slots, especially the pennies, offer a multitude of games so you don’t need as many,” Carano said. “Plus, they are twice as expensive as they used to be.

“The gaming floors are reducing in size and what we are doing is either putting restaurants on the floors or nightclubs and enlarging our other amenities like our race and sports book.”

The Atlantis Casino Resort Spa has more room to work with, and a $100 million expansion brought a bridge to the Reno-Sparks Convention Center, renovated the rooms and brought new bars restaurants and a spa. It is the future of the Reno market, according to Atlantis CEO John Farahi, who thinks the area needs more full-scale resorts to compete with California.

“Whoever has the total resort concept, with all of their amenities that the guests expect today, those are the ones that will survive,” he said. “The properties that are substandard in this market are probably going to go by the wayside.”

In the last nine years, 12 casinos have failed in Reno.

“They didn’t keep their properties fresh,” Carano said specifically of Mapes and Fitzgeralds. “They woke up one day and it was too late.

“The strong will survive. Those who compete and keep their properties fresh and exciting will be the ones that last. Those that don’t will go by the wayside, as history has shown.”

By Casino Connection Staff   Thu, Jun 04, 2009

One day after releasing its first quarter revenue report, Station Casinos announced it would continue to discuss restructuring options with bondholders beyond a forbearance agreement deadline.

The lapsed deadline signaled the beginning of a new forbearance agreement with the company’s lenders. This agreement is the third since Station began negotiating bankruptcy options. This latest forbearance expired May 29.

“The company said that the extended forbearance period will permit it to continue ongoing discussions regarding the terms of its restructuring with the lenders and the holders of its notes,” Station said in a filing with the Securities and Exchange Commission.

In another filing, the company noted that it would be forced to file for Chapter 11 protection if bondholders did not approve a restructuring plan. It is unclear if this latest forbearance agreement was necessary for Station to make changes to its existing plan, which would require Station bondholders to make concessions while owners Colony Capital and the Fertitta family injected $244 million into the company.

Station Casinos is currently operating under $5.74 billion in debt, and its revenue in the first quarter of 2009 fell to $307.8 million from $378.8 million in the first quarter of 2008.

By Casino Connection Staff   Thu, Jun 04, 2009

Black Gaming has experienced its fair share of economic woes over the last year, but the hits keep coming as the company saw a loss in the first quarter of 2009 and had to further cut operating costs.

The company, which owns and operates three resorts in Mesquite, Nevada, reported a quarterly loss of $5.16 million over last year in a filing with the SEC. The loss may force the company to file for bankruptcy, as it is having difficulty negotiating with lenders.

Black Gaming has all but halted the majority of its operations at its Oasis Resort Casino Golf and Spa, and is continuing to slow the progress of the Oasis by laying off 147 employees at the hotel, as well as closing a Denny’s restaurant and other facilities.

By Casino Connection Staff   Thu, Jun 04, 2009

Fontainebleau Las Vegas is struggling to stay afloat after lenders pulled $770 million in financing, and now employees are suffering.

The company has let go part of its corporate staff, including information technology and marketing employees. Workers on the site have also been laid off until funding flows back to the project. And news came late last month that CEO and president Glenn Schaeffer was leaving the company, too.

Fontainebleau developers are also being sued by CCCS International, a construction consulting firm that was fired after discovering fraudulent billing practices within the company. CCCS alleges that it is owed more than $1 million for services rendered. Fontainebleau executives said the firm was fired for not doing its job.

By Michael DiGiorgio   Thu, Jun 04, 2009

Boys Town of Nevada honored J.K. Houssels (center) and family at its fifth annual Journey of Hope gala at the Las Vegas Hilton. Nearly 400 guests attended the Mardi Gras themed event to celebrate one of Southern Nevada’s most respected families while supporting Boys Town, an organization committed to saving children and healing families. Joining Houssels are William S. Boyd (l.) and Boys Town Nevada Executive Director Tom Waite.

By Casino Connection Staff   Thu, Jun 04, 2009

A team-building exercise at Santa Fe Station didn’t just strengthen relationships between coworkers, it also strengthened the property’s relationship with the community.

About 50 team members broke down into groups to assemble bikes for local elementary students. They quickly found that there were limited resources to assemble the bicycles, forcing everyone to work together to get the bikes finished in time.

Once the bikes were finished, 10 students from the property’s partner school H.P. Fitzgerald were brought in to get the bikes. They met with the team members, who showed them their new toys (for more information, see page 46).

“I think it should be mentioned that the impact this has on the students; when they are adults they now in turn will be inspired to make a difference in children’s lives,” said H.P. Fitzgerald principal Laure C. Forsberg. “This is huge and truly does keep the cycle of giving and making a difference going.”

By Casino Connection Staff   Thu, Jun 04, 2009

MGM Mirage completed its $2.6 billion restructuring effort last month as it works to get out from under an increasingly heavy debt load.

The company sold 164 million shares of company stock at $7 a share, raising $1.1 billion. The stocks included 143 million shares on the open market and 21 million shares purchased by the company’s underwriters.

The company also raised $1.5 billion in the private sale of senior secured notes using the Bellagio and Mirage as collateral.

“This marks a new beginning for our company,” said MGM Mirage chairman and CEO Jim Murren. “We are now well positioned to continue the work needed to achieve recovery and improve profitability.”

The sale reduced Kirk Kerkorian’s ownership percentage of the company—even with his company Tracinda Corp. buying 14.3 million of the common stock offering—from 53.8 percent to 39 percent. It is not expected to change how the company is run, however.

By Casino Connection Staff   Thu, Jun 04, 2009

Fremont Street is turning back the clock to the hippie days for a three-month celebration called the Summer of  ’69: Vegas or Bust.

The celebration includes a number of free performances by bands like the Guess Who and Blood, Sweat and Tears, who kicked off the celebration Memorial Day weekend. Upcoming shows include Rare Earth and Bill Haley’s Comets June 6, Big Brother and the Holding Company on July 3, Jefferson Starship on July 18 (sorry, but no Grace Slick) and Canned Heat on September 5 to wind down the summer.

There is also a custom-created Viva Vision show called “Songs of Life.” The show was created by artist John Van Hamersveld, who designed the cover for the Beatles’ Magical Mystery Tour, the Rolling Stones’ Exile on Main Street and the movie Endless Summer.

Van Hamersveld also applied a custom paint job to some hippie busses that will be around the Fremont Street Area, and he will open Hippie Nation Gallery and Records, where he will sell posters, digital prints, silk screens and albums.

“I’ve custom-created four symbols that represent summer of ’69: a flower, symbolizing growth; a peace sign, instilling safety within; a heart representing love; and a globe for balance,” Van Hamersveld said. “I feel these emblems truly symbolize the great year of 1969 and bring a fresh, modern approach to these events.”

Thu, Jun 04, 2009

This ongoing recession has been particularly pervasive. It doesn’t seem there is any part of the community that has escaped unscathed. The working class is seeing jobs disappear. Housing prices have plummeted—whether they have bottomed out remains to be seen—and many people are upside down in their homes. Bankruptcy protection is appealing to more and more people these days.

Even the casino operators, once thought impervious to economic downturns, are feeling the pinch. And it’s not just small companies, it’s the heavyweights. Companies like MGM Mirage and Harrah’s Entertainment. Companies that, just two or three years ago, were expected to revolutionize the Strip by consolidating their massive landholdings into metaresorts that would change the face of the casino industry. Well, that idea seems to be off the table. It’s not even clear yet just what the Strip will look like next year. (You can read more about that in the story “The State of the Strip” by Caitlin McGarry on page 28.)

And now to address a state budget shortfall, the wise men and women in Carson City are looking to up the sales tax by 0.35 percent. It’s not a huge increase, although my understanding is that it will take the total sales tax rate in Clark County from 7.75 percent to 8.05 percent.

But what other options did the lawmakers have than to raise one of the rates of a nice regressive tax like sales tax? We all know that gaming is a popular target for tax increases, but this industry already pays more than its fair share, generating somewhere around half of the state’s general fund. An income tax is out of the question. So too, it seems, is a more broad-based business tax.

But there is an untapped industry in Nevada that is doing quite well for itself, and yet lags behind when it comes to taxes. It’s the state’s reason d’etre: mining. The Silver State is a leading producer of gold in the world. Nevada alone ranks fourth behind China, South Africa and Australia in production. And with the unstable global economy, the price of gold continues to climb.

Generous tax laws allow a number of write-offs for the mining industry. In essence, these companies are able to write off the cost of doing business. As a result, the Las Vegas Sun reported that despite the $5.4 billion in gross profits the industry enjoyed in 2007, it reported only $1.5 billion in net proceeds and paid just $34 million in taxes. Between 2000 and 2007, the industry sold $25.5 billion worth of gold but paid just $125 million in taxes for an effective tax rate of about half a percent.

For comparison, in 2009, gaming in Nevada generated $47 million in taxes in January, $65 million in February and $74 million in March based on overall revenues of $908 million, $830 million and $918 million in those months, respectively. The first three months of 2009 saw Nevada casinos pay 67 percent more to the state in taxes—$186 million total—than the mining industry did in the seven years from 2000 to 2007; and that payment was based on a total revenue that was 90 percent below what the mining industry generated in gross profits (and it doesn’t take into account the additional state revenue generated through live entertainment taxes, hotel room taxes or sales taxes).

Fortunately, there is at least one group that sees the potential value in making the mining industry pay its share of taxes: the Progressive Leadership Alliance of Nevada. The organization is looking at the possibility of a ballot initiative to amend the state Constitution to bring the tax code relating to mining into the 21st century.

But the mining industry has loads of cash—obviously, because they’re not parting with very much when it comes to taxation—with which they hire lobbyists and which they can use to fund a massive “public awareness” campaign. It will be a long and uphill battle to get this industry to pay its fair share.

This is something that should be of great concern to anyone who is in any way associated with the gaming industry. As the economy recovers and lawmakers look to better protect themselves and the state from budget shortfalls in the future, they’re going to need to find revenue from somewhere. And the gaming industry is almost always at the top of this list. It’s an easy pitch for any politician because far too many people see casinos as doing little more than printing money. While we know that’s not the case, just looking at how much support the Nevada State Education Association generated for its proposal to up the gaming tax to 9.75 percent to fund teachers salaries should provide ample evidence just how easy of a target the casino industry really is.

For the next two years at least, every Nevada resident will instead help shoulder the burden of the state’s economic troubles through the increased sales tax. Maybe that lesson will be enough to help convince voters to support an initiative to apply a fair tax on the mining industry. For lawmakers looking to balance a budget or fill the coffers of a rainy day fund, this industry is the real gold mine.

By   Thu, Jul 09, 2009

Aspen Highlands Holdings LLC acquired land on the corner of Las Vegas Boulevard and Sahara Avenue where it plans to build a Times Square-like retail and gaming center.

Plans call for a two-story, 40-foot high facility with 37,100 square feet of floor space and a 9,000-square-foot casino. It will has have a restaurant and a tavern, but not a hotel.

Aspen Highlands plans to seek approvals for the project during a July hearing in front of the Las Vegas Planning Commission.

If approved, the developer plans to start immediately and finish the project by fall 2010.