Sunday, August 29, 2004
Copyright © Las Vegas Review-Journal

INSIDE GAMING: Feds' request has papers flying

MGM Mirage is expected to complete its multimillion-page response to the Federal Trade Commission's second request for information by Sept. 30, sources say. The July 30 request was expected, but it reflected agency concerns with possible antitrust consequences from the $7.9 billion merger with Mandalay Resort Group. Sources say a two-month turnaround would be something of a record and reflects MGM Mirage's experience because of its takeover of Mirage Resorts. Sources also said the commission is expected to put Harrah's Entertainment's $9.4 billion buyout of Caesars Entertainment on a second track that is not expected to slow the MGM Mirage deal.

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It's not just top executives who've been given pink slips at the Aladdin. Secretaries and hourly workers also have been told they'll be history Wednesday. Each worker let go was called in by Aladdin President Bill Timmins and told personally, so no termination letters have been sent. But the workers involved so far say they've been told they're not eligible to be rehired by the Planet Hollywood group that is buying the Strip icon. The total is said to still be less than 30, but insiders said it is likely to increase as the new owners stretch to resurrect the $1.2 billion landmark.

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California dreaming. Las Vegas locals casinos may be doing former bodybuilder-turned-governor Arnold Schwarzenegger's heavy lifting for him. While the governator tries to lure companies that have moved to Nevada back to California, billboards here are titillating Station Casinos customers with a free trip to Del Mar. Sam's Town just ended a similar promotion. Suncoast is promoting itself with a Del Mar copycat, "Race Day Las Vegas." And Terrible's has been running a promotion for a trip for two to San Francisco. With friends like these, who needs competitors?

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A bigger pie. The openings of Las Vegas Sands Macau and Galaxy Waldo supercharged gaming growth in Macau. Thanks to the interest in the two newcomers, Macau's casino revenue in July increased to more than $500 million, up 70 percent from a year earlier. Asian media say Steve Wynn's planned resort, which it is calling "the next shark," will have a similar effect in boosting interest in Macau's 15 casinos when it opens in 2006.

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Forget the whales. Gaming companies say in Macau they're after the little fish rather than the really high rollers from Asia who've been the objects of their affection in Las Vegas. China, they tell us, has the second-largest (after the United States), but fastest-growing middle class in the world, with more than 250 million in the Macau-Hong Kong area.

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.