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Las Vegas Casino Death Watch


Last Updated: August 28, 2010

Recent News

08/28/10

The bankruptcy judge has put his stamp on the Station bankruptcy plan. So, basically, that's that. As far as those who aren't owed any money are concerned, things will pretty much stay the way they were.

08/19/10

More downtown news, this time about the Tamares properties. Look for the Plaza to get a face lift and return to its original name, "Union Plaza". Whether any of this has long lasting effects, one way or the other, is anyone's guess.

08/19/10

The Lady Luck has received approval from the Las Vegas City Council to being their remodeling plans. Actually, we don't think this is news. Let us know when the Lady Luck actually begins their remodeling process. That will be news.

08/16/10

What will happen to the M? It sounds like it won't be that long until we find out. Several suitors have expressed interest. In our opinion, there's a lot going for the M itself. The problem is that when the recession hit, the growth toward that area came to a screeching halt, leaving it closer to the middle of nowhere than they'd like.

08/15/10

Liz Benston has put together a good piece examining the aftermath of the Station bankruptcy.

08/09/10

The Las Vegas Sun contains another fine article by Liz Benston about MRI's CityCenter. Basically, CityCenter is losing money right now and stealing business from other MRI properties. This is no surprise, but now we have facts that verify this. The article states that CityCenter lost $128M last quarter. I'm not too worried about MRI, though. Even if the US economy doesn't recover quickly, they have $2 billion in cash and a growing business in Macau that should keep them solvent.

At the same time, the article points out that with the excess capacity of rooms and the reduction of rates at the high end properties, it is places such as the Tropicana and Riviera that are badly hurt by this. At the Death Watch, we believe that the Tropicana probably has sufficiently deep pockets along with a long term outlook that will allow them to slip by. If the economic downturn continues for several more years, then even with restructuring keeping the Riviera viable becomes much more difficult.

08/06/10

It looks like Station Casinos will stay intact. The stalking horse bid turns out to be the winning bid. There are many who will say that the deck was stacked against outside bidders, and that this deal was not good for minority creditors, but that doesn't make any difference in the outcome.

08/02/10

How healthy is MGM Mirage, er, I mean MRI, these days? Their ability to remain solvent largely hinges on whether the income from their properties can match their debt payments, especially on the half of City Center that they own. In the RJ, Howard Stutz has a good piece that provides some insight into MRI's finances.

07/30/10

Boyd Gaming announces that they won't bid on the Station Casinos "OpCo" properties. However, the article does indicate that other bids have been submitted.

Now that Boyd has given up on acquiring Station assets, we fully expect them to work out a plan to purchase MGM's half of the shared Borgata project in Atlantic City.

07/23/10

Not exactly due to a contemporary closing, but it's a bit of history nonethleless. Final demolition on the Moulin Rouge has begun.

07/22/10

This week's Las Vegas Business press has an article on the Station bankruptcy proceedings. There's not much new on the Station front that we didn't already know, but there's an interesting bit toward the end: "Boyd ... is also reportedly trying to acquire M Resort ... ." Everyone who has tracked the area gaming business knows that M had to emerge from the gate in a troubled financial state, but since it is privately held we really haven't had any visibility into that process. As far as we know, this is the first published statement on the situation.

07/12/10

Rivera Holdings has filed for bankruptcy. It looks like this is one of those deals where the reorganization plan already has the blessing of most of the creditors, so this might be a fairly smooth process. We don't see any reason to think that this will significantly impact day to day operations.

07/11/10

TI owner Phil Ruffin was the guest on the TV show Nevada Newsmakers on July 7. The item of interest was regarding a possible sale of the Mirage by MGM Resorts International, as they now call themselves, to Ruffin. Ruffin said that such a sale is unlikely to make financial sense for both the buyer and the seller, and that MGM is currently not shopping around any of their Las Vegas assets.

06/30/10

The Cosmopolitan is now accepting room reservations. It is scheduled to open in mid-December. We wish the folks there good luck.

06/25/10

Might we see some action on the long shuttered Lady Luck? Perhaps we could see a reopening towards the end of 2012. If we here at the Death Watch were the sort of people who might make the occasional wager, and we are, we'd take the "over" for the max.

06/22/10

Judge Zive in the Station Casinos bankruptcy case says full speed ahead on the auction. We expect the next important milestone to be in early August when the "OpCo" property auction occurs. Of course, we also expect that someone will still try to make hay in this case before the auction goes down. At the Death Watch, we still have doubts as to whether this deal is what's best for the creditors, but once again, we weren't consulted.

06/21/10

Bloomberg reports that Onex Partners, new owners of the Tropicana, are looking to expand. No specifics on what tires they're kicking, but it's an interesting article.

06/21/10

In today's Las Vegas Sun, Liz Benston writes a typically good piece about the future of the Rio. Short version: Harrah's is an interested seller, there have been some potential buyers that have expressed interest, yet nothing has happened yet.

06/13/10

In today's Las Vegas Review-Journal, Howard Stutz takes notice that an industry analyst suggests that Harrah's may be planning to go public again sometime soon.

05/30/10

This seems as good a time as any to mention the changes occurring at the venerable Tropicana. The new owners are in the process of implementing $165 million in improvements in this property, going with a Miami theme. We don't expect they will be able to compete with top-tier properties, but if it's run right, we think that this property can be profitable aiming at a mid-tier clientele. We wish the Tropicana luck in reviving its image.

05/29/10

Now that we have a ruling on the Station Casinos bankruptcy proceedings, Death Watch maintainer Nick Christenson has written a commentary on the situation.

05/28/10

The verdict is in. Station Casinos' reorganization plan is given the thumb's up. Wow. we admit Judge Zive knows a lot more about this case than we do, but we think having Station put everything up for auction makes a lot more sense. We'd let them make a stalking horse bid on the pieces they still wanted, but to just hand over the best bits, plus all the corporate infrastructure, and to give them the inside track on the rest that they still want, well, that makes no sense to us. Where's the moral hazard?

05/25/10

The Review-Journal suggests that progress may be forthcoming with the long-shuttered Lady Luck downtown. How optimistic should we be? At the deathwatch, we think the answer is contained right in the headline. We would say that "Lady Luck showing new life" doesn't quite seem justified in the face of "LV Planning Commission to discuss proposal".

05/14/10

Who is tops on the list for the next bankruptcy? It has to be Hooters. When the company itself states that it worries it may not have enough cash to meet obligations, that's a problem. Of course, since they have already been missing payments, a cynic might think that such a company might exaggerate their problems to improve their bargaining position when trying to restructure their debt. What's really going on? Well, they haven't chosen to give us the real scoop.

05/05/10

We're going to have to wait again to find out what's going to happen to Station's Casino's assets. Station Casinos was granted an extension until mid July to come up with their bankruptcy plan.

05/04/10

The company that runs the Fremont Street Experience is suing Tamares Gaming, who owes the Plaza and Las Vegas Club, for nonpayment of their FSE dues. We're not saying this is the same situation, but the last time the FSE folks sued a casino, it was a casino called the Horseshoe, and this was a part of maybe the most spectacular casino death spiral in Las Vegas history. We're just saying... .

05/03/10

The Las Vegas Business Press has a good article on the real costs of the failure of Fontainebleau. We can't really say that this article is all that germane to the main topic of the Death Watch, but it's a good story that reminds us how these failures impact real people's lives.

04/24/10

There has been speculation for years that Harrah's might have the Rio on the auction block. Bloomberg Businessweek provides the most substantive evidence of this.

04/21/10

Station Casinos has released their plan to emerge from bankruptcy, but not everyone thinks it's a good one. Who'da thunk it? This isn't over, not by a long shot.

04/09/10

Station Casinos has proposed how some of its assets will be disposed. We'll see what interested parties might have to say about it.

04/08/10

Apparently, February was a pretty good month for Las Vegas casinos. The Review-Journal reports that casino revenues are up 13.9% year-over-year. In the Las Vegas Sun they tell it as a 33% in gross win. The layout of the calendar had something to do with these numbers, but it's still the best news Nevada gaming has probably heard in 30 months.

04/07/10

We have a schedule for the opening of the "Cosmopolitan of Las Vegas". It is scheduled to open to the public in December. Of course, this isn't exactly a great time to open a new Strip hotel, but what are you going to do? We wish them luck.

04/05/10

The Las Vegas Sun has an article about how bad business is on the north end of the Strip. There's nothing big picture here that followers of this site don't already know, but there's, some good facts and figures, and it makes a good overview of what's going on in town.

04/02/10

So, which casinos in Las Vegas are having difficulties? John Edwards of the Review-Journal gives us a list of three who have reported serious red ink in 2009: Hooters, Herbst, and the LV Hilton. The Hooters news is nothing new. The bad news for Herbst is prior to the approval of their Chapter 11 reorganization. Hilton is showing losses, but not huge ones compared to the equity of the property. Plus, Colony Capital can probably afford to limp by for a while.

03/30/10

The Las Vegas Business Press has a revealing look at the state of downtown Las Vegas. There aren't any breakthroughs here, but there is some information on the Lady Luck, and a really interesting list ranking downtown casinos by gaming revenue.

03/25/10

Big news: The Station Casinos reorganization plan has been filed. They propose to keep four properties, manage a fifth, and sell the rest. They would keep Palace Station, Boulder Station, Sunset Station, and Red Rock. They would also control the Wild Wild West. Presumably, they don't care much about the property, they care about what they might build there some decade.

The list of things that would be sold includes Texas Station, Santa Fe Station, Fiesta Rancho, and Fiesta Henderson. The sale list also includes half shares in Green Valley Ranch and Aliante Station, as well as several smaller casinos that generally fall below the threshold of interest for the Death Watch.

Two big questions remain: Will the bankruptcy court and creditors accept this proposal, and who will be the bidders on what ends up for sale?

03/24/10

There are rumors on Wall Street that Boyd may be a takeover target by Las Vegas Sands (who owns the Venetian.) We at the Death Watch agree with the article at TheStreet that Boyd is more likely to acquire Station Casinos than be acquired by anyone. We can't rule it out, though.

03/24/10

We know the Riviera is in a bit of a financial bind. Consequently, in some quarters people are worried it may have to close its doors. We don't think that eventuality is that likely, especially since someone is trying to purchase the place by buying up the Riviera's debt. This illustrates our maxim that during tough economic times, casinos change hands, but rarely close up altogether, and that casino closing are far more common during good economic times than bad.

02/17/10

The bad news keeps coming in for Lake Las Vegas. First, the resort community itself is in bankruptcy, closing two of its three golf courses. Then the Ritz-Carlton announces it will close in May. Without the Ritz-Carlton, the already struggling Casino MonteLago just isn't viable, so it will close shop in mid-March. This is a ways from the Strip and downtown, but it's a sign of the times.

02/15/10

In this forum we had wondered how it is that Harrah's, which seemed on the verge of filing for bankruptcy, could afford to buy Planet Hollywood? In the Las Vegas Sun, Liz Benston asks basically the same questions. To our benefit, she also provides some answers.

02/07/10

In today's LV Review-Journal, NORM! passes on a rumor from an anonymous source that projects that the proper line is "three" Las Vegas casinos to "go under" in 2010. NORM! doesn't say who it is, or who his source is. I guess being able to report on a story while not having to actually provide information is one of the cool things about being NORM! Of course, we don't know if this source knows anything, and we don't know what "go under" means. Is that "file for Chapter 11", or is that "put plywood over the doors and windows"? It makes a big difference. As a consequence, we don't put that much credence in this, but like NORM!, we report it anyway.

01/28/10

How close did MGM Mirage come to having to file for bankruptcy last year? According to Murren himself, within minutes. What has Murren taken from his "near-death experience"? That after a six year absence, MGM Mirage should rejoin the Las Vegas Chamber of Commerce. That wasn't what we would have guessed, but okay.

01/27/10

It's official, Icahn gets the Fontainebleau. The big question we're hoping he answers, will construction resume?

01/25/10

Tropicana renovations are underway. We're guessing this will be ongoing for more than the next year, and that it will be a while before we see big changes on the casino floor.

01/22/10

It has been brought to our attention that Global Gaming Business web site has an interview with Four Queens and Binion's owner Terry Caudill on the future of Binion's and downtown. Note, this interview took place well before Caudill announced that Binion's would close its hotel rooms, and he gives no indication that this might take place in this interview. Also conspicuous by its absence is that no mention is made about both properties' dispute with their landlords. The most eyebrow-raising moment is when Caudill suggests that downtown can absorb three to five thousand additional rooms. Well, maybe he means once the economy improves.

01/20/10

It looks like Carl Icahn will be the new owner of the Fontainebleau. Now we look forward to hearing what he plans to do with it. In any case, we wish him luck.

01/16/10

We'd expect no less, but Liz Benston has a good article in the LV Sun on Carl Icahn's options should he succeed in acquiring the Fontainebleau. Our guess falls somewhere between options 2 and 3.

01/16/10

At midnight tonight, Harrah's will take over hotel and some restaurant operations at Planet Hollywood. Note that they haven't yet purchased the property. That's still in the works. This seems backwards to us, but what do we know?

01/14/10

Penn National Gaming says they're bowing out of the Fontainebleau bidding process. That leaves Carl Icahn with the stalking horse bid and the inside track. Frankly, we're at a loss to think about who else might come forward and make a play for this place.

01/13/10

The LV Sun has a report about Binion's post closing of their hotel rooms. We've been through the casino since the keno lounge, hotel rooms, and coffee shop were closed, and at least on the surface the place looks reasonably busy.

01/03/10

Howard Stutz of the Las Vegas Review-Journal makes predictions about Las Vegas gaming in 2010. He doesn't provide any bold glimpses of the future, but he does provide a pretty decent recap of where we are.

12/27/09

Binion's closing their hotel rooms has disturbed a great number of readers of the Death Watch as well as many fans of "old Las Vegas". Death Watch maintainer Nick Christenson has written a commentary on the Binion's situation.

12/27/09

TI owner Phil Ruffin makes some predictions about what will happen to the Las Vegas casino business over the next decade. It's always gutsy to make predictions, especially about the economy on how things will go, so we applaud Ruffin and cut him some slack for even venturing out to do this. My opinion is that his timeline for a complete turnaround by 2020 seems a little optimistic to me. By 2020, I'm not sure Echelon is completely built, but I think it's more likely than not that construction is well along the way. I doubt the MGM/Kerzner venture is operating by 2020. Other than that, his projections seem plausible.

12/19/09

Boyd Gaming appears to be serious about not just acquiring some of Station Casinos' assets, but about acquiring all of Station Casinos' assets. Wow.

12/16/09

What do you do when people aren't filling your rooms? Close some rooms. The Sahara is doing just that. We fully expect this is on a temporary basis, but there's not as much foot traffic on that end of the Strip, especially not these days, as one might like. As long as there truly isn't anyone to fill those rooms, this seems prudent. Whether this points to longer term problems for the Sahara or not, time will tell.

12/01/09

Opening: CityCenter
Well, Really the non-gaming hotel Vdara is opening. Crystals, the retail space, opens Thursday, the Mandarin Oriental opens Saturday, and the property with the casino, Aria, opens December 16. We wish the new project good luck.

11/30/09

The Las Vegas Review-Journal reports that Binion's will close their main hotel tower on December 14. Presumably, this is a temporary move, but we don't know if it's a temporary measure for the holidays, for the duration of the recession, or the beginning of something ominous.

11/28/09

If you're a company on the verge of insolvency, what do you do in a down market? Why, bid to acquire another casino, of course. Harrah's is apparently looking to extend their long line of casinos on the east side of Las Vegas Boulevard to include Planet Hollywood.

11/23/09

Majestic Star Casino files for bankruptcy. Note that even though Don Barden is in charge of both Majestic Star and the Las Vegas Fitzgerald's, this filing does not directly affect any Las Vegas property. Nonetheless, it's a sign of the times.

11/23/09

We have another bidder for the incomplete Fontainebleau, Billionaire financier Carl Icahn. He offered $136 million, outbidding Penn National Gaming. These aren't exactly the sorts of bids that the Fontainebleau contractors were hoping to see.

11/13/09

Another commentary! This time on what the opening of CityCenter means for Las Vegas.

11/13/09

We're still looking for the first true Deathwatch casualty of the current economic downturn. It's now looking like Hooters might be a candidate. This is enough to move Hooters up the list a notch.

11/13/09

Not everyone thinks the filing by Boyd Gaming asking for consideration of their bid in Station's bankruptcy proceeding is entirely altruistic. Okay, in actuality nobody thinks they're being entirely altruistic. Boyd wants their bid for Station's assets to be considered, Station doesn't.

11/10/09

The Riviera is losing money and missing payments. Why? For the same reasons everyone else is losing money and missing payments. Revenues are down. What seems unusual to us is that they're missing debt payments. How does a property that has been under the same ownership for so many years have $227.5 million in debt?

11/01/09

Now that it's official that the Echelon project has been mothballed for the indefinite future, Death Watch maintainer Nick Christenson has written a commentary on the Echelon situation.

10/31/09

Herbst wins the race to be the first casino company with a Las Vegas presence to emerge to bankruptcy. Don Pardo, tell them what they've lost. "They've lost complete control of their company, including the slot routes and their Nevada casinos, including their Primm properties along with Terrible Herbst in Las Vegas!"

10/06/09

Penn Gaming puts in a bid for the Fontainebleau. It's a lowball bid, but in this market and with no other obvious bidders, the bankruptcy judge may not end up with other options. We'll see if other bidders emerge.

10/02/09

Selling the Fontainebleau appears to be on the fast track. Whether there are buyers out there who agree or not is an open question.

09/24/09

Casino mogul and Las Vegas celebrity Bob Stupak has passed away. The Death Watch extends our condolences to his friends and family. He left an indelible mark on Las Vegas.

09/24/09

Reports are that former casino mogul Bob Stupak is seriously ill.

09/19/09

Will it be Penn National that buys up the Fontainebleau assets and opens that construction project? Some say they will, but some say it wouldn't be such a good fit.

09/16/09

We're used to seeing reviews of Strip restaurants in the local papers, but we thought it was cute to see a review of the revamped Golden Grille at the Gold Spike appear in the RJ. We like the "reservations are not required" bit.

09/15/09

There may be a buyer for the Fontainebleau. The current owners are hoping it doesn't come to that, but it looks increasingly likely that someone else will be at the helm when the project is finally completed.

09/11/09

The Stations bankruptcy proceedings heat up. Liz Benston of the LV Sun has an excellent overview of what's going on and why.

09/09/09

The Golden Nugget executives are looking at taking the company private again. They've already tried this twice.

09/02/09

Lenders to Station Casinos are asking why Boyd's offer to buy Station assets was rejected. If one of the purposes of restructuring is to get the best deal for the bond holders, it would seem that selling off casino assets is something that should receive serious consideration. The lenders also claim that there are reasons that Station management and some of the larger lenders may have a conflict of interest.

 
 

Got any information about Las Vegas casino closings? Don't hesitate to send us email at: npc@lvrevealed.com.