Sunday, November 09, 2003
Copyright © Las Vegas Review-Journal

INSIDE GAMING: Art of borrowing works for Wynns

Art has some practical uses. Steve Wynn and Elaine Wynn are using their famed art collection as collateral for a $125 million revolving line of credit from Bank of America. The Wynns can take cash advances, pay the principal amounts and then reborrow them, with the loan secured by their multimillion-dollar collection. However, they have to pay interest and are also charged a fee on sums borrowed up to $35 million each quarter. Bank of America is requiring them to maintain liquid assets of at least $20 million.

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Tokyo-based Nippon Television has had a news crew in Las Vegas interviewing gaming industry insiders and experts on high rollers and how they are treated by the casinos. The newscasters tell us it comes as a shock to middle-income Japanese that casinos dole out comps, especially to high rollers and whales. More important for the industry, the newscasters tell us serious discussions are well under way for the development of up to six urban casinos in Japan. They say the market potential is at least four times and possibly 10 times larger than the potential of the United Kingdom market.

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Kiwi media have been reporting Mandalay Resort Group President Glenn Schaeffer, who's bought a vineyard in Hawkes Bay, New Zealand, is coaching his ex-pat friends not to expect their money to make a big impression. That is the American value system, he says. Kiwis don't have money but they live well, enjoying the best quality of life of anywhere in the world. Sounds like a healthy attitude -- and just maybe a retirement plan.

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Speaking of possible retirements from Mandalay, there's still no word on why founders Mike Ensign and Bill Richardson have bailed on their ownership positions. Nevertheless, they've continued their steps to separate from the company over the past month as they've been (very profitably) liquidating their options positions. Harrah's Entertainment Chairman Phil Satre also dropped 290,000 shares by exercising options. At least he's willing to tell his investors his sales are just to diversify his personal holdings.

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Los Angeles sources say NBC "Tonight Show" host Jay Leno is scheduled to broadcast his program live for a full week in May from Paris Las Vegas. Ad agency types tell us the time sells for $125,000 for a 30-second spot and the exposure should be worth millions in free publicity not just for Park Place Entertainment Corp., but also for Las Vegas as a destination. Leno still appeared at The Mirage this weekend, although his performances were moved to the Danny Gans theater in the wake of the tiger incident with Roy Horn.

The Inside Gaming column is compiled by Gaming Wire Editor Rod Smith. You can contact him by phone at (702) 477-3893, fax (702) 387-5243 or e-mail at rsmith@reviewjournal.com.