Gaming’s spread no threat to Strip

Las Vegas has always suffered from an inferiority complex.

When Atlantic City’s first legal casino opened in 1978, naysayers thought it was Las Vegas’ death knell.

Obviously, that wasn’t the case.

Other “sky is falling” prognostications concerning the growth of riverboat casinos, regional markets, California’s tribal gaming expansion, and Macau came to the same end.

It now appears New York Gov. Andrew Cuomo wants to plop the world’s largest convention center in Queens, and it would include New York City’s only full-scale hotel-casino resort.

Malaysian gaming giant Genting wants to attach the convention facility to its plans for expanding Resorts World New York, the video lottery terminal casino at the Aqueduct Race Track. The $4 billion development includes three hotels with 3,000 rooms, an entertainment center and a casino that includes both slot machinelike VLTs and table games.

Should Las Vegas worry?

Fuhgetaboutit.

New York may be the city that never sleeps, but one resort — despite it’s anticipated size and scope — isn’t the Strip.

New York City has an estimated 86,230 hotel rooms spread throughout several boroughs. Las Vegas has almost 151,000 rooms, most of which are concentrated along the Strip’s roughly five-mile corridor that also covers three convention facilities, each with more than 1 million square feet of meeting space.

New York as a whole, however, is percolating with casino activity.

The state has nine commercial racetrack casinos, including Resorts World New York. There are also a handful of Indian casinos, mostly in the state’s northern region. Several tribes are looking at expansion opportunities, particularly in the Catskills. The Shinnecock tribe has shown interest in building a casino on Long Island.

A casino the size of a Strip resort in the heart of New York City, however, does seem a bit daunting.

Resorts World opened at the end of October and in less than three months, collected gaming revenues of $89.9 million. The casino helped boost the state’s VLT gaming revenue 68.3 percent in December.

Resorts World opened with 2,486 VLTs, including 220 electronic table games. The total number of machines grew to 5,000 in mid-December.

Wells Fargo Securities gaming analyst Dennis Farrell Jr. said Resorts World could take 5 percent to 10 percent of gaming revenue away from Atlantic City and Connecticut casinos.

“Chatter around gaming expansion has intensified, as the governor has proposed allowing additional casinos in the state, as well as the legalization of live table games,” Farrell told investors recently.

But it would take some doing for gaming expansion to take place.

Two consecutive state legislative sessions must pass a measure adding casinos or allowing VLT-only casinos to add table games. New York residents would then vote on the matter. Expansion is considered a constitutional amendment.

Then, there’s the matter of a casino at the Meadowlands Race Track across the river in New Jersey.

Deutsche Bank gaming analyst Andrew Zarnett speculates that fallout from the state’s gaming regulatory reforms last year could lead to a casino at the Meadowlands and two smaller casinos in Atlantic City.

New Jersey Gov. Chris Christie is reluctant to approve gaming outside Atlantic City, but Zarnett surmised that tax revenues generated by VLTs at the Meadowlands might be too lucrative to pass up.

“The emergence of gaming across new jurisdictions in the Atlantic Coast market, namely Massachusetts, New York and New Hampshire, may prompt lawmakers to soften their stance on legalizing a casino at the Meadowlands within two years,” Zarnett said.

Meanwhile, the potential for three resort casinos located in Miami — sometimes called the New York City’s “Sixth Borough” because of retirees and tourist traffic from the Empire State — is causing anxiety among several gaming observers.

So what could all this expansion mean to Las Vegas?

New jurisdictions might have created marginal negative impact on Las Vegas at their outset during the heavy expansion period from the mid-1990s to the mid-2000s, but the Strip continues to thrive, reaching a high point of almost $6.7 billion in gaming revenues in 2007.

The recession hit late in the last decade, and gaming revenues fell in successive years. However, recovery has seemingly taken hold. Strip revenues are up 5.2 percent through November.

Fuhgetaboutit.

Howard Stutz’s Inside Gaming column appears Sundays. He can be reached at hstutz@reviewjournal.com or 702-477-3871. He blogs at lvrj.com/blogs/stutz. Follow @howardstutz on Twitter.

ad-high_impact_4
Business
Holiday parades help bring shoppers to Downtown Summerlin
Sports Town USA floor manager Angela Gardonio talks about how the work that goes into the Downtown Summerlin holiday parades and how they benefit her and other businesses there.
Final vote on CG Technology
Final commission vote on the $2 million settlement for CG Technology.
Happie Home Startup Establishing Headquarters In Las Vegas
Digital companion startup company Happie Home is establishing its headquarters in Las Vegas after receiving tax abatements from the Governor's Office of Economic Development on Nov. 15. (Bailey Schulz/Las Vegas Review-Journal)
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center will showcase 13 small businesses in November and December and seven in January. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
T-Mobile uses ticketing data to plan for event
T-Mobile Executive Director of Arena Operations explains how ticket sales data and demographics help plan staffing, vendors, parking and operations for an event.
Costco opens its doors in southwest Henderson
Costco has opened its fifth Las Vegas-area location near the intersection of St. Rose Parkway and Amigo Street. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas strip mall and office park
The Krausz Cos. and WG Group bought a strip mall and an office park in Las Vegas for nearly $80 million total. They acquired a portion of Tropicana Beltway Center in the southwest valley for $59 million. They also acquired the Westbay office complex in the Las Vegas Medical District. The buyers are former owners of The Gramercy, a once-mothballed mixed-use project in the Las Vegas suburbs. They sold The Gramercy in phases for more than $100 million.
Mario Barth talks about the growth of the tattoo industry
Celebrity tattoo artist and business owner Mario Barth talks about the growth of the tattoo industry at The World of Tattoo industry trade show at Planet Hollywood in Las Vegas
$7.5M Las Vegas pot dispensary opens near Las Vegas Strip
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. It has entertainment including an interactive floor and floating orbs. (K.M. Cannon/Las Vegas Review-Journal)
Caesars CEO to step down next year
Caesars Entertainment Corp. CEO Mark Frissora will leave the casino company in February. Frissora has been CEO since July 2015. He was named CEO right after Caesars' operating company filed for Chapter 11 bankruptcy protection Caesars Entertainment emerged from bankruptcy protection in October 2017 Before Caesars, Frissora spent seven years as chairman and CEO of Naples, Fla.,-based Hertz He led the consolidation of the rental-car industry through Hertz‘s acquisition of the Dollar Thrifty Automotive Group.
Planet 13 in Las Vegas adds twist to marijuana dispensary look
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. The dispensary is located near the intersection of Desert Inn Road and Sammy Davis Jr. Drive, near Trump International, in Las Vegas. Planet 13 has plans in the future for a coffee shop, a tasting room for marijuana-infused beer and wine, a lounge for consuming marijuana on site if that is legalized and space for food.
Caesars Entertainment opening 2 resorts in Dubai
Cove Beach will open on Meraas’ Bluewaters Island in Dubai in November and Caesars Palace Bluewaters Dubai and The Residences at Caesars Palace Bluewaters Dubai will open in December. (Caesars Entertainment)
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like