Gaming briefs for April 29, 2005

Friday, April 29, 2005 | 9:34 a.m.

Bank of America completes $7 billion credit financing

Bank of America Corp. and Royal Bank of Scotland Group Plc completed their $7 billion loan financing for MGM Mirage that allowed the casino company's acquisition of Mandalay Resort Group, a filing by MGM Mirage shows.

On April 25 MGM Mirage completed its acquisition of Mandalay, the owner of Circus Circus and Excalibur, for $4.8 billion to create the world's second-largest casino-resort company. Both companies are based in Las Vegas.

MGM Mirage's new credit is rated BB by both Standard & Poor's and Fitch Ratings, two levels below investment grade, and a similar Ba2 by Moody's Investors Service.

MGM Mirage paid $71 a share for each share of Mandalay. It now owns 24 resorts in markets including Las Vegas, Atlantic City, New Jersey, and Detroit.

Developer forming gaming subsidiary

Garry Goett, president and chief executive of Olympia Land Corp., released details this week about his previously announced gaming company, Olympia Gaming LLC.

The formation of a gaming subsidiary is a natural evolution of the company, Goett said. Olympia Land opened Casino Fandango in Carson City in 2003.

The company is in the planning stages for a number of large-scale, mixed-use properties, of which gaming will be a central focus of each development, Goett said.

Olympia Gaming will be headquartered at the Olympia Corporate Center in Las Vegas, and is a subsidiary of Olympia Land Corp.

Olympia Land Corp. is well known for its 2,700-acre Southern Highlands master-planned community and numerous retail projects throughout the valley. In February 2005, the company bought 5,500 acres bordering Mesquite in Lincoln County for future development.

Senator says lottery included

The Senate's state budget proposal, which could be unveiled next week, will contain language to create a lottery, Sen. David Hoyle, D-Gaston, co-chairman of the Senate Finance Committee, said.

The lottery move, which has been hinted at for a couple of weeks, would help Senate Democrats avoid a showdown with Republicans and a handful of Democratic colleagues opposed to a state-run numbers game.

At least five Democrats have expressed opposition to a stand-alone lottery bill. If unmoved, they could join the 21 Republicans to block a lottery bill in the 50-seat Senate.

Sen. Martin Nesbitt, D-Buncombe, argued while a House member in 2002 that the state shouldn't encourage people to "throw their money down a rat hole" with a lottery.

Nesbitt still doesn't like the lottery but said it will be hard to vote against a $16 billion budget because of a gambling provision that would generate less than $100 million in its first year.

The lottery "is a speck on the wall compared to the budget," he said. "At that point, you've got to figure out which is chaff and which is wheat."

Poker approved for charities

The Legislature approved a bill this week allowing charities to stage Texas hold 'em events as fundraisers.

"I think the potential for making money is going to be a lot greater," said Rick Walker, owner of Wild Bill's Northwest, a Portland company that stages casino nights for charities.

The version of poker has soared in popularity with televised high-stakes poker tournaments.

Walker figures his company also will be a big winner. Already, one of his big moneymakers is a free Hold 'Em league that features noncash prizes.

As of now charities can only offer games where players compete against the house, such as in blackjack or craps.

With HB2311, which goes to the governor, games like Texas hold 'em where players compete against each other also will be legal.

They can't play for cash, but Walker said charities can offer enticing prizes, like a trip to Vegas.

The bill passed the Senate with just one no vote -- from Sen. Joanne Verger, D-Coos Bay.