Robert Kelly, President Innovation Project Development

Robert Kelly spent a career completing other people’s dreams. Now he must help them visualize those dreams, too.

An unprecedented gaming slowdown brings a little Franklin Delano Roosevelt sentiment to this Innovation Project Development president and former Harrah’s executive. Fear, he believes, is what casino operators must overcome more than flat revenue sales. Unlike Roosevelt’s Depression-era dilemma, Kelly believes gaming’s first crisis will end sooner rather than later. Rewards await those who position themselves, if they can only ante up.

“You still have to be thinking about the next project,” Kelly said. “If you are ready to jump back into the machine, it will come back to you, whether it is six months, 18 months or two years. It is going to come back.

“This United States market is going to recover. We are not laying down. This is not the Depression. We are experiencing slowdowns in the gaming industry, sure, but this is still a place in which people need to get out and enjoy adult entertainment. Although there are many unknowns, I remain bullish in a major bear market. Even the new [presidential] administration might help shore up some of these financial markets.”

Kelly has seen numerous trends as a design and construction executive for Harrah’s, Caesars, Park Place Entertainment and Grand Casinos. During a 16-year career with Harrah’s—a number of those years spent in Las Vegas—Kelly served many properties.

He helped Caesars Palace transform itself into a renewed power on the Strip. The resurgence occurred via the Augustus Tower, a signature piece of a $500 million expansion.

“They were rebuilding from within,” he said of Caesars’ construction from the early new millennium. “There was a slump in construction during that time, but Caesars thought big. We did millions and millions of dollars worth of upgrades. Caesars was up against its competition like Bally’s, the Flamingo and the new casinos coming in. But we put in Bobby Flay’s and other exclusive restaurants. It was all very exciting, and Caesars had something new to offer.”

Revenues skyrocketed thereafter. As in the Field of Dreams movie, Kelly has been able to proclaim that whenever casinos have “built it, they have come.” Caesars has mirrored Kelly’s thinking, proceeding with a $1 billion expansion in a tepid economy.

Casinos often practice a leap frog mentality, looking to one-up their competitors. That benefits companies like Kelly’s. He was part of the construction for the Jimmy Buffett-inspired Margaritaville restaurant inside the Flamingo. Then there was work inside the Bellagio and the Venetian. The last two decades provided a Golden Age for Kelly, despite the acquisition web that made his service contracts vulnerable.

Finally, he founded Innovation Project Development, based outside Biloxi, Mississippi.

The Minnesota native had been a master carpenter and commercial and construction expert before casinos called. He gained substantial gaming experience running housekeeping, maintenance, shipping and receiving departments for Grand Casinos in Minnesota.

It was invaluable experience, helping to separate him from other construction managers once he became independent. Innovation Project Development helps operators see projects through to completion. It will not only build to code specifications, but advise clients on the proper amount of restaurants, restrooms, gaming tables and amenities to reflect their market.

“We help you scope out the job, give you a square-foot analysis that you can take to the bank for obtaining credit and then we will help you look at your cash-flow analysis,” Kelly said. “We also know the gaming market pretty well. We can tell you what needs to be in your facility and the cost of everything, as soon as you turn on the spigot of interest payments. You will know how much is out there in lost revenue when your doors are not open.”

Gaming has just discovered its mortality, absorbing unpleasant buzz words like “layoffs” and slowdowns.” Many projects have been cancelled or slowed. Casino operators need the next move to be a big, successful one. It will be interesting to see whether future projects are smaller and which properties will take the first chance.

In Las Vegas, the landscape has changed.

“The biggest change I’ve seen over the years has been the conversion of being totally gaming-oriented to a 50-50 mix of gaming and amenities,” he said. “When we first started, the hotel rooms and restaurants were marketing hooks for the property. That paradigm has changed.

“Now that the hotels are supposed to be cost-effective revenue centers, you have to address the needs of that part of the business. You need to fill up those midweek days, those Monday through Thursday openings.”

The next wave of casino thinking will be important for the construction-oriented entrepreneur. Expansion delays help no one, including him. When the tide turns, he figures to be at its forefront.

By Dave Bontempo

Casino Connection Sports Editor Dave Bontempo is an award-winning sports writer and broadcaster who calls boxing matches all over the world. He has covered the Philadelphia Flyers in the playoffs, as well as numerous PGA, LPGA and Seniors Golf Tour events, and co-hosted the Casino Connection television program with Publisher Roger Gros.