VLTs, Christie, casino, MGM Mirage, Pansy Ho
Governor Christie, Please do not renege on your promise of no video lottery terminals (VLTs) in New Jersey. You made that promise on my radio show the day before the election and several other times when we spoke over the election process. If you had only said it once voters may have felt you were just trying to get votes, but you said it several times and many of the folks in this area took you at your word and voted for you. VLTs are an important issue to the casino industry and those of us who depend upon the industry for our livelihood. I urge you to reestablish yourself and live up to the promise that you have made to those who know the negative effect the VLTs will have on Atlantic City.
MGM and Pinnacle
The latest announcement regarding casino corporations leaving Atlantic City was made on Monday, Feb. 8, when MGM Mirage confirmed plans to sell its stake in the Borgata Hotel Casino & Spa in Atlantic City.
A story in the Las Vegas Sun, by Steve Green, stated the following: “This is done in order to settle an investigation by New Jersey regulators into the suitability of its partner in the Chinese region of Macau. The New Jersey Division of Gaming Enforcement found Pansy Ho to be unsuitable because of alleged organized crime ties with her father, Chinese casino operator Stanley Ho. The New Jersey agency recommended MGM Mirage disassociate itself from Pansy Ho if it wanted to continue operating in New Jersey. That could have required MGM Mirage to sell its stake in the MGM Grand Macau in the world’s largest gambling market. Nevada regulators earlier approved MGM Mirage’s arrangement with Pansy Ho. Las Vegas-based MGM Mirage could have fought the New Jersey recommendation by taking the issue to hearings before the New Jersey Casino Control Commission, but instead has decided to leave the New Jersey market. Boyd Gaming Corp. of Las Vegas, MGM Mirage’s partner in the Borgata, would be a likely buyer of its partner’s stake, but has declined comment on the issue.”
Regarding that issue, MGM Mirage stated in a release that it “is currently involved in constructive settlement discussions with the DGE (Division of Gaming Enforcement),” which had centered on the company placing 50 percent of its ownership interest in the Borgata, and related leased land in Atlantic City, into a divestiture trust for which MGM Mirage would be the sole economic beneficiary. While no definitive settlement with the DGE has been reached, the company has asked its lenders to consent to the trust agreement. Any settlement is subject to both the DGE and Casino Control Commission (CCC) approval.
“We disagree with the New Jersey Division of Gaming Enforcement’s recommendation to the CCC concerning our Macau partner, but pursuing a settlement with the DGE presents the best course of action for our company and its shareholders,” MGM Mirage chairman and CEO Jim Murren said in the statement. “We would like to put this matter behind us and move forward with compelling growth opportunities we have in Macau.”
It is sad news for those of us who anticipated that MGM Mirage, which had architectural plans and a model to build a magnificent casino complex adjacent to the Borgata, would eventually become a part of the casino industry in Atlantic City. It is easy to understand MGM Mirage’s decision between Atlantic City and Macau. Hopefully, the Boyd Corporation will pick up the 50 percent owned by MGM Mirage.
Pinnacle Entertainment announced last week that it is looking to sell the land it had purchased for the development of a casino-hotel complex. I learned of this news from a regular listener of my radio show. He sent me the following e-mail with his view of the announcement. “While I am expecting them to take a hit on it, it really does not matter to them since they purchased the property with insurance proceeds related to their casino boat that was destroyed by Hurricane Katrina. I noted that they previously wrote down the value of the land by $160 million, but I would be extremely surprised if they could even get $160 million at this point [an article indicated Pinnacle initially bought the property for $270 million].”
I thought the purchase price was $320 million, which is why it surprises me that they have completely abandoned the project. We all know it was former Pinnacle CEO Dan Lee’s vision to build it, and new management is shaking up many of the things that he was putting together while at Pinnacle. Lee at least wanted to sit on the property until the economy got better and the A.C. gaming market stabilized. They would have been able to do so since they do not have any debt obligations on the property. They are only really paying taxes on the land at this point. Regardless, I expect this land to sell for substantially less than what they paid.
Tennis Anyone?
The inaugural Caesars Tennis Classic will take place at A.C.’s historic Boardwalk Hall on Saturday, April 10, at 7:30pm. The event will consist of a legendary field of former U.S. Open champions, including Ivan Lendl, Mats Wilander, Andy Roddick, Marat Safin and others. Tickets are on sale at Ticketmaster and the Boardwalk Hall box office. Prices start at $25. Caesars will host pre- and post-tournament events including the must-see Tennis Village in the Palladium Ballroom with appearances by the tennis greats. The village will be open to the general public, free of charge, as part of Caesars Tennis Classic. Venus Williams will host the event.
Pinky’s Corner airs Monday through Friday from 4 to 6pm on News Talk WOND-AM 1400. His TV show, WMGM Presents Pinky, airs Saturday at 7:30pm on TV40. Pinky’s e-mail address is: pinky@acweekly.com.
Gov. Chris Christie this week expressed support for the referendum, which would allow sports betting at New Jersey casinos and horse tracks.
Gov. Chris Christie Wednesday signed legislation to allow for two “Boutique” casinos to be built in Atlantic City. The legislation allows for two casino projects to be built with a minimum of 200 hotel rooms, lower than the 500 now required. Christie says he signed the bill as part of ongoing efforts to spur Atlantic City’s economy and create jobs. “This bill will provide a boost to the engines of Atlantic City and the regional economy, bringing badly needed jobs to the area and signaling the re-emergence of world-class entertainment,” said Christie is a press release. “While this is an important step in meeting our commitment to revitalize Atlantic City as a premier destination resort, we have more work to do in laying the foundation for growth in this critical area of our economy.” Several other measures to help the city are scheduled to be voted on by the state Assembly in coming days including the creation of a state-run tourism district in the city (to be run by the Casino Reinvestment Development Authority), allowing online gaming, limited to state residents, and streamlining casino regulations and oversight. The bill allowing for smaller casinos, S-1866, “revises State law to authorize the Casino Control Commission to issue...
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1. JGM said... on Feb 11, 2010 at 03:18PM
“Wrong. MGM Mirage wants to place 100 percent of its ownership interest in the Borgata into a divestiture trust.”
2. RandomX856 said... on Feb 11, 2010 at 03:25PM
“I love A.C., but have to disagree. Slot machines at the racetracks in the northern part of the state can be used to filter business and profits to the A.C. casinos, if done properly. Time to face reality, A.C. needs some serious help. Nobody from out of state is going there to gamble anymore. And unless it doesn't get cleaned up a little, nobody's going to be going there period. Start with getting rid of the panhandlers who harrass me everytime I walk down the boardwalk on a weekend afternoon. It got to the point where I just drive down the road to Ocean City and walk on their boardwalk instead of patronizing A.C. It makes me sad because I was one of the people rooting for A.C. I've given up. The city is a mess. Its time we turn our attention to the state as a whole instead of 30 more years of focusing on a has-beened city. Sorry.”
3. RandomX856 said... on Feb 11, 2010 at 03:28PM
“I love A.C., but have to disagree. Slot machines at the racetracks in the northern part of the state can be used to filter business and profits to the A.C. casinos, if done properly. Time to face reality, A.C. needs some serious help. Nobody from out of state is going there to gamble anymore. And unless it doesn't get cleaned up a little, nobody's going to be going there period. Start with getting rid of the panhandlers who harrass me everytime I walk down the boardwalk on a weekend afternoon. It got to the point where I just drive down the road to Ocean City and walk on their boardwalk instead of patronizing A.C. It makes me sad because I was one of the people rooting for A.C. I've given up. The city is a mess. Its time we turn our attention to the state as a whole instead of 30 more years of focusing on a has-beened city. Sorry.”
4. Madison said... on Feb 11, 2010 at 04:01PM
“MGM.....Let's see. Hang on to the JV with Boyd in AC, giving up the Macau property or leaving AC altogether for the Macau property. Come on, it's a no brainer!!! AC is a crime infested slum anymore.
Pinnacle...it bought the Sands with money from a revolving credit facility. Katrina insurance settlement money came through years later. And the company has taken a huge hit on the property. Carrying costs for 2009 alone were 10 million dollars. They have over 400 million dollars sunk into that vacant lot. They deserve all the losses they will take on their folly.
VLT's.... let the tracks have them. What possible negative effect could they have on the slum that AC has become?”
5. Dave said... on Feb 11, 2010 at 04:49PM
“Pinky, do you hear what all the above said? AC is a filthy, bum and crime infested mess and I have to agree. Why isn't anybody addressing the obvious problems? Why don't you in your articles? I'm dumbfounded by the lack of action. It's down right depressing any more.”
6. Wad said... on Feb 11, 2010 at 06:23PM
“AC a bum and crime infested mess? REALLY? You dickheads just figured that out? When has it NEVER been that? You all sound like it just happened. But, that being said, I still prefer AC over any of those boring "racinos" in PA which is where I live. Man are they boring as hell and I cannot ever remember going to one and being ready to leave 15 minutes later (Philadelphia Park and Holloywood Casino).
AC needs sports gambling, and that CRAP in Delaware is NOT sports gambling. Yeah, I know, will take a "constitutional amendment" (well...damn near). I'm sick of having to fly to Vegas to make a legal bet on a game.”
7. Big Bruce said... on Feb 11, 2010 at 07:29PM
“Many love to bash Atlantic City; I would however, like to compliment the city on the great clean up of the boardwalk this week. Despite two major storms,this week, the boardwalk was in exceptional condition. My wife and I were having "Cabin Fever" and looking for a SAFE place to take a walk-we picked Ac Boardwalk-GREAT PICK! The walk was completely clear of snow and spotless-congrats to the city!!!!!!!”
8. jen said... on Feb 11, 2010 at 09:26PM
“A.C. is done, just implode it & install an airfield with F-16 shows year-round.”
9. Dreamer said... on Feb 12, 2010 at 08:41PM
“Pinky, didn't you renig on some bets? So what are you bitching about. Me, me, me, me, me. AC is done if the current administration keep up with their shenanigans. Self-serving, idiots, one and all.”
10. Arnold Rose said... on Feb 13, 2010 at 05:02PM
“I was upset when Pinnacle knocked down Sands Casino. I felt they should have continued running the Sands while they were building a new complex. That way they would have continued with their employees, customers and paying taxes in AC and NJ. Then when the new facility was completed they could have knocked down the old Sands.”
11. Joel said... on Feb 14, 2010 at 02:00AM
“Big Bruce, Who cares about you taking a walk on the boardwalk? There are
much more important issues being discussed here about the casino
industry and it's relation to Naiman's Butcher Shop. Mosoy and Paul Haney
are very likely done as casino execs from Hilton.”
12. Eric said... on Feb 14, 2010 at 03:10AM
“I like the sports betting idea. That would give Atlantic City an edge over the competition. Now maybe because I live in Philadelphia I'm not too phased by panhadlers. Come guys AC is a city. I've been coming to AC since I was a kid (before gaming). It has come a long way. But it has the same problems many cities have. I guess people thought that casinos would pave the streets in gold and there would be 100% employment. However, much like some people's 401K's AC has taken a direct hit. AC hasn't diversifed. Everything is reliant on the casino industry. In good times that's ok but in bad times that can be disastrous. Come on, The Walk, The Pier, the boardwalk business facade program, new bus terminal, all things that have cleaned up the city. As far as the homeless, I think surrounding counties are dumping their problems on AC. AC's challenge has been to become a destination resort for those outside of the tri state area. Now that it seems every state has gaming,now what? What can AC do?”
13. jen said... on Feb 16, 2010 at 06:14PM
“now the ACES train catches on fire...it's getting comical...what's next, a tsunami?”
14. Sammy the Gypsy said... on Feb 16, 2010 at 07:25PM
“First time I can say Pinky is RIGHT! We don't need VLT's.
What I need is a good BLT. I used to get one at Kornblau's, but they closed.
Then I went to Lou's. They closed.
I even went to Florida Cold Cuts, but they're not on Florida anymore. They moved to Ventnor. I'm not allowed in Ventnor, I was thrown out several years ago due to some alleged criminal activity. So where do I go now? Nowhere!
What this town needs is a good deli preferably on Rhode Island Ave.”
15. Anonymous said... on Feb 19, 2010 at 10:37AM
“Pinky are nut cases the only people who comment.”