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Caesars Entertainment properties in Las Vegas are Paris, shown in the background, as well as Bally’s, Bill’s, Flamingo, O’Sheas, Imperial Palace, Caesars Palace, Rio, Harrah’s and Planet Hollywood.
Thursday, Feb. 18, 2010 | 2:18 p.m.
Sun Archives
- Harrah’s gets OK for Planet Hollywood purchase; job cuts planned (2-3-10)
- Harrah’s to take over Planet Hollywood management (1-15-10)
- Harrah’s moves ahead with possible Planet Hollywood acquisition (11-30-09)
- Harrah’s working on plan to take over Planet Hollywood (11-25-09)
- Planet Hollywood’s financial outlook worsens (11-16-09)
- Harrah’s buys Planet Hollywood debt (9-15-09)
- Harrah’s expects annual savings of $500 million (3-17-09)
- Harrah’s reports loss, says LV properties hit hard (3-13-09)
- Harrah’s announces plan to reduce debt burden (3-4-09)
- Strip building boom, buyouts were ill-timed, and many see more pain in ’09 (3-1-09)
- Harrah’s wants class-action suit over debt swap dismissed (2-27-09)
- Harrah's hit with class-action lawsuit over debt plan (2-16-09)
- Harrah’s seeking $740 million from credit line (2-13-09)
- Harrah’s makes cost-cutting moves (2-12-09)
Beyond the Sun
CARSON CITY – While unanimously approving the takeover of Planet Hollywood, the Nevada Gaming Commission today questioned whether Harrah’s is becoming too big in the Las Vegas market.
Harrah’s will now have nine casinos with an estimated 25,000 employees, or about 20 percent of the workforce in the industry in Southern Nevada. (MGM Mirage remains the state's largest gaming company. The company has 12 casinos in Southern Nevada, 10 of them, including its half-owned Aria at CityCenter, on the Las Vegas Strip. The company employs about 53,000 workers in Southern Nevada.)
Commission Chairman Peter Bernhard cited a law enacted when Howard Hughes bought a slew of casinos on the Strip that would guard against a monopoly. He wondered if there would be a “negative impact on the market share.”
Attorney Dennis Gallagher said Harrah’s has a number of national contracts with suppliers in an effort to get the best prices. But each casino has the ability to make a decision on a particular contract if it thinks it can receive a better deal, he said.
Marilyn Winn, who is president of Bally's and Paris Las Vegas for Harrah’s, will become president at the financially distressed Planet Hollywood. She said employees won't have to be rehired or take another drug test to stay on the job.
There are 2,300 employees at Planet Hollywood. She said she would be posting 40 available jobs at the resort.
Planet Hollywood would be placed between Caesars Palace and Harrah's Las Vegas in pricing and customer appeal, she said. She added that the Miss America pageant will continue to be staged at Planet Hollywood.
The commission was also concerned today about the conduct at Prive, which is operated by another company under a lease. Planet Hollywood was fined $500,000 last summer for problems associated with the nightclub that included serving minors, fighting and lewd and sexual conduct.
Winn said it was reviewing the incidents and Harrah’s would “ensure it was run with security. We are aware of the prior situation,” she told the commission.
Commissioner John Moran questioned why in these troubled economic times, Harrah's wanted to acquire the property.
Jonathan Halkyard, senior vice president and chief financial officer for Harrah’s, said it acquired $300 million in debt for $70 million. There is still a $500 million mortgage on the property but he expects to meet the annual payments.
Halkyard called Planet Hollywood a “complement to (its) Las Vegas properties.” He said Harrah’s improved business at Caesars Palace, the Flamingo and Imperial Palace after it took them over. He told the commission he thought Planet Hollywood could be marketed more effectively.
Bernhard told Harrah’s officials he had seen “many transformations” of this hotel-casino since it opened as the Tally Ho. But this venture, he said, has “the greatest chance of success.”
In another application, the commission approved Steven Spickler to become the sole proprietor of Legends Casino in Las Vegas. It is presently in bankruptcy, but Spickler told the commission he hoped to have it clear by the end of the year.
It now has 30 slot machines but Spickler says he may have authority for 35 machines. “We expect a good year,” he said.
Too big, yes. MGM Mirage is too big too. They should be forced to divest at least 5 properties each
Yes of course this is a monopoly, and yes of course it's going to have a major impact on the quality of the treatment the customer gets with little or no competitive business incentives from hotel to hotel. It BAD overall for the players, and 20% of Las Vegas workforce if the corporation goes belly up. I can't think of anything good about Harrahs taking over this property except perhaps that it has delayed the ultimate demise of the property for a little longer.
Absolutely, Harrahs has gotten too big! And the lack of competition is destroying Vegas. They couldn't possibly offer 6:5 blackjack, lower proposition bets on craps, etc if they only owned one or two properties. Few people would gamble in those places. But lower the odds, fix them at all properties and people will stop coming here. Hey, that's happening, isn't it. Why go to Vegas to play blackjack when you get better odds at your local Indian Casino? And people suspect that if they are increasing the take where it's obvious they can only be doing even more so on slots and other games. I'm not sure I blame Harrahs for trying this. But I blame the gaming commission for creating an ugly duoply on the strip. Word is getting out and it's not good for the town. Tax increases will be the result of the lack of competition. Let a few casinos fail and then rise back under new ownership and compete. This is a disaster.
If these two companies own so many casinos on the strip, and this leads to bad service, higher prices, etc., then why is Downtown Vegas properties not taking off? They cater to the lower roller, have great deals, and good gambling. Just thinking.
Harah's was too big before PH. There are now what, 3 different companies controlling the entire strip. No wonder it's failing. Lack of diversity, lack of ingenuity, lack of new ideas. R.I.P.
Stupid comment lvs. MGM is huge with 25,000 employee's as well, and nobody said anything about them. Plus MGM just joined the Las Vegas Chamber of Commerce, putting thousands back into the business community.
Hopefully Harrahs' will do the same.
Caesars is the only "decent" property in the group. The others (except Paris and Rio) are pretty dumpy. I'm sticking with the Cannery for it's newer video poker machines, decent restaurants and good comps for the locals!
Downtown isn't "taking off" because you feel like you will get shot, mugged, raped or catch a disease if you take a trip down there. That's not fun at any price.
If these better odds so many people post about were the cure, don't you think the Riviera, Sahara and Tropicana would be throwin' it out there and taking over the Strip? I think people complain about the odds all the time, still play at the bad odds joints and claim they don't.
By the way; the Indian Casinos usually have worse odds than Las Vegas.
The best odds are not to "play." And, if it was only "play" people wouldn't be complaining. You see, it's gambling, not playing. You aren't entitled to win when you gamble.
And, this isn't what the article is about.
Harrah's too big? What about MGM-Mirage? And, hello, it is America. Free Market. There are PLENTY of other casinos / hotels / resorts in town. There is no monopoly.
Downtown isn't thriving also because of the extreme sweat and outright hostility towards patrons who bet more than chump change. "Good gambling" is available only to those who play red chips or coins at the table games. Anyone playing real money is quickly harassed or shown the door.
Downtown properties have blundered in offering some truly horrible games as well. Fremont and Main Street Station recently gutted their double deck blackjack games by changing the shuffle point so that less than a deck is dealt. Ridiculous. Binion's has tried to rip off the suckers with 6 to 5 "blackjack" -- no wonder the place is failing. Vegas Club sweats a single green chip -- is it really in the casino business?
If downtown had competent operators who were not afraid of their own shadows, and were willing to accept reasonable levels of action, the places could thrive despite the obvious negatives mentioned in other comments above.
I would say that there is close to a duopoly. But Harrahs seems to be the worst. We can argue all we want but the people I know are finding Vegas less appealing all the time. As for continuing to "play at bad odds joints" and claiming not to, well, I think the financials speak for themselves. I'm a fan of Vegas. I love the Sands, Wynn, etc. I just hate what Harrahs is doing. Take a good look at many of the properties and cost avoidance will jump out at you everywhere. I think it would be great if Harrahs owned Sands and the Wynn, too. I'd never gamble again or hang out at the bars and restaurants along the strip. I'm not bashing Vegas. I just don't like the direction it is going. If you think times are tough now, just wait until a place like coastal California opens a "strip." Better weather, fishing during the day, nightlife, and they advertise that they give better odds than Vegas. If you think something like that can't happen then you probably don't think that we'll buy cars from overseas, either. We have to be the best and take nothing for granted or somebody will steal our lunch. I say revenue is speaking for itself as to whether people like the changes in Vegas. And for those who think this is "temporary" don't hold your breath...
Do not worry. The Maloof's are holding the fundraiser for harry and with Obama on board you can expect the fed's to start breaking up their competitors any time. In the new economy the friends get to be the winners and those that don't get in line will be the losers.
umm...duhhhhhhhhh.
oh, and once again the liberal enviroprotector is wrong and it shows the lack on knowlege of economics by liberals.
this is NOT a monopoly. it's BIG and it's ugly, but it is NOT a monompoly.
can you go to poker palace and gamble and play slots?
yes.
does mgm mirage or harrah's own that place?
no.
then it's not a monopoly.
Of course they're too big, homogeneous, with silly jackpots, a ridiculous rake structure, and they've pretty much RUINED the WSOP. There are rules and regs for a REASON.
Also, we make joke. 'PH' stands for 'property of Harrahs'.
Here is a visualization: imagine the lights were completely turned off on all of Harrah's properties on the Strip; imagine the brilliant video displays of Planet Hollywood, imagine the Eiffel Tower, the big blue balloon in front of Paris, the subdued blue entrance to Bally's, the pink Flamingo logo, the blue glow of the Imperial Palace, the classical Roman grandeur of Caesar's Palace, the red and blue towers of the Rio and the colorful and festive sign fronting it, imagine these icons, and the properties they grace, enveloped in silence and darkness. This is a figurative conception of the depth and breadth of the effect on the very life Las Vegas should Harrah's fail, and of the enormous leverage and bargaining power this imparts to the Harrah's corporation.
I worked at Caesers and saw first hand what this company can wreak. They have no business running anything bigger than a corner title loan store in north town. The company motto: Arrogance, Ignorance and F*** everyone else.
harrahs, the evil empire, not only owns half the strip but also controls the gaming control boards and the D.A.'s bad check unit...no surprise that the acquisition was approved by the GCB.
What is really sad is I live in ND where blackjack is legal in local bars for charity, and it still pays 3:2 with a max bet of $25 and a minimum table is $1...tell me why I would want to pay for a flight to vegas even with a comped room, when I can get drinks within 2 minutes instead of waitin for 15 minutes for a drink, regardless of paying for them, and still enjoy sleeping in my own bed at the end of the night and getting long hauled by a cab? Harrahs is all I can say.
Weez need too bring back the good old dayz of Vegas.. The way is should be run. Cheap Entertainment and showz. Good Foodz, Nice looken Dame'z and all you could drink. Hay I saw Frank Sinatra for $6 Buckz Jerry and Deno for free Just becauz I'm a good looken guy...
I say let the Mob Run Vegas. they know how to treat the guest and make money
Regards
Vinnie
The casino capital of the world... and our casinos purchase billions in goods and services from small and medium-sized businesses ... and there's nothing in the gaming regulations that mandates NV casinos must/should/consider purchasing NV goods and services first?
Something's not right and someone's asleep at the switch. NV casinos are purchasing all this equipment and furnishings and foodstuff and ... we're creating jobs in ... Nebraska?
With ur unemployment rate creeping skyward, why aren't we demanding our state legislators pass a law that encourages/mandates NV casinos purchase from BV-based companies, employing NV residents? The more spending on goods and purchases among NV companies, the more new jobs created in NV, and the more new taxes generated in NV.
Come on, Gibbons might not be up to this but our legislators should be.
P.S. Let's also get rid of Ensign. Ensign's a fraud!!!
How did Harrah's get the right to build a casino on Indian Land in Rincon California?
Did someone turn a blind eye?
I am interested in finding this out.
I do not like the fact that I am denied a booth seat in the casino resturant. I am told those are for "Diamond Club" Members Only.
Isn't that a form of segragation?
How do they get away with this practice?
I am only an entry level player.
I limit myself to $250.00 a week (Max)
I play only poker 4 to 5 hours a week.
I do play dollars slots but not at "Harrah's".
Their slot payouts are "Lousey". We have (3)other Indian Casino's whith-in (5)miles of Harrah's Rincon. The slots pay better at (Pala) (Valley View) (Pauma). So they get most of my slot play.
Harrah's too big? No.
Harrah's too lousy? Yes.
harrah's too big? yes. because it's a corrupt
company that prides itself of unethical biz ptactices:
- milking drugging and kidnapping high rollers till they lose everything and get prosecuted by crooked D.A. Bernie Zadrowski;
- exposing workers and guests to high levels of asbestos over a 20-year period of illegal construction at caesars palace. then buying off the D.A.'s office to get the charges dismissed;
- screwing its employees and shareholders while enriching its corrupt executives;
- ruining tens of thousands of lives and growing
i pity the employees of planet hollywood:(
Cy Ryan. I am confused.
If, as you wrote: "...the Nevada Gaming Commission today questioned whether Harrah's is becoming too big in the Las Vegas market..." and the "...MGM Mirage remains the state's largest gaming company" - why isn't the Gaming Commission questioning the size of MGM Mirage as well? Especially since they have built a huge CityCenter (half way) with more to come? Plus, CityCenter is so big and their debt accumulation, lawsuits, and potential bankruptcy proceedings are of concern to many watchers.
The only thing I can think of as to why the GC is asking this question about Harrah's, is because they are a much larger gaming company than MGM Mirage - if you include all the out-of-state and international gaming holdings Harrah's has, world-wide.
Then, you might have a (Las Vegas) monopoly problem (partly defined as): "A form of market structure in which one or only a few firms dominate the total sales of a product or service" (Black's Law Dictionary - like a group of hotels?
In additon, a violation of monopoly law might exist if Harrahs is shown to fit the following legal definition (extract): "A monopoly condemned by the Sherman Act is the power to fix prices or exclude competition coupled with policies designed to use or preserve that power."
Evaluating this "size" problem would be up to the Gaming Commission (and eventually, a court) to determine whether the Nevada Law (referenced in this Sun story re: Howard Hughes) has also been violated. But first, the GC will have to find that such conditions exist, and constitute a monopoly by Harrah's - within the definition of the Sherman Act and/or Nevada law.
If Harrah's "whole corporate business" is of concern, size-wise, then MGM Mirage should also be of concern - even if it is a smaller corporation(s). As stated by several people herein, either gaming company could "take down" Las Vegas if they defaulted, or went out of business. This would be a big mess - and potentially destroy the Las Vegas' economy, along with thousands of employee positions.
That effects of that kind of "size" problem may be what the Nevada law is intended to prevent. So "being to big" still remains a question re: Harrah's and MGM Mirage/CityCenter.
I hope this discussion serves to help unravel the rational that may be behind the question the Gaming Commission has asked about Harrah's "size." In any case, the points made are still valid, and I would like to ask Cy Ryan to post his comment on the issue.
Thank you.
I work on the strip. Most tourist say it's to expensive now days nothing like it use to be. I hear alot of that.
It cracks me up when people talk about how the Blackjack odds are so bad. How many Blackjacks do you get on average when playing a 6 deck shoe? Exactly!! The other payout is even money. Downtown has the 3/2 odds and there shutting down towers and struggling to survive. QUIT GRIPIN PEOPLE!!!
It is too expensive nowadays. I just came back from a trip to the LVS, stayed at Palazzo for four nights.
Question: why does the Palazzo coffee stand (Coffee Bean and Tea Leaf), which is situated so as to cater almost only to hotel guests, charge four bucks for a small cup of coffee? We saw similarly exorbitant prices elsewhere. That is complete madness. Needless to say, we didn't spend much on food or drink while we were there.
The strip is a complete ripoff and downtown is a seedy pit; I won't be traveling to LV for a long, long time.
If Harrah's wants to own ANOTHER piece of property that people aren't patronizing, why should we care?
I do stay downtown and have a good time.It is alittle seedy as geenab65 puts it.There is a lot of police also.When I am playing and a bumm ask for money or cig. I just say No, then they walk off.Most of the time securty will tell them to leave.I have stayed on the strip but hate walking a mile to the next casino. So for now I will stay downtown were the odds are the best and free shows outside.I hate loosing my money but Vegas was not built on winners.
The answer to the question is very simple: YES!
Harrah's (and MGM) has basically a monopoly on the Strip. Any low to mid roller staying on the Strip is basically held hostage to these two companies. Does the casino or customer benefit from this? DUH. Example: Harrah's has ruined BJ and is able to push the house edge on all their games. Where can people go instead? Try to find a decent $25 BJ game at any Harrah's property on the Strip -- it does not exist. Let's not even talk about price gouging on food and drinks.
Sell it all to foreign countries. No need for american property. There best, keep it down U.S.
Foreign affairs committee, new monopoly decision maker.
HET isn't a monopoly but HET and MGM's concentration of ownership is definitely anti-competitive. All you have to do is look at the rules of the games and offers in the mail. HET now sends only one offer for their entire group of casinos and you have to pick one and leave a 72 hour gap between hotel stays. When there were multiple owners you got offers from PPE, IP, Coast, Harrah's, and Planet Hollywood and could book them back to back or even simultaneously.
Right on Vegasgooch. I've been saying that for some time now. Denver21 misses the point and I rarely take shots at individual comments. It's like getting a bad meal at a restaurant and telling somebody to quit whining about it and then hoping that the business will succeed. Listen to the customers or die. Harrahs is dictating to the customers and everybody in Nevada will pay taxes or suffer loss of services with this approach. It's bad for the customer and that makes it bad for Nevada. It's not a debate. The Vegasgoochs of the world are not going to debate the Denver21's about where to spend their money. The gaming commission is contributing to the mess. And as somebody said, instead of one dark building many will go dark at the same time. That will also negatively impact the non-Harrahs properties. That makes it bad for Vegas.
Having just returned from Vegas I guess I will throw in my 2 cents. Is Harrah's too big? Yes. We have been coming for years now but this trip is likely our last for quite some time. Why? Well, there is only one reason for any sane person to come. To be entertained. Walking into a casino and getting wiped out quickly is not entertaining for anyone. I spent a lot of time walking around and watching and very very few people were having a good time. You don't have to win to have a good time. You do have to feel you have a chance. And that is where the problem lies. As Harrah's and MGM get bigger and the competition gets eliminated the customers get forgotten. You have had a pretty tough time lately but I am afraid you ain't see nothing yet if things continue the way they are. As someone else said why pay for airline tickets etc. only to get ripped off the same as at any local indian casino. I hope someone wakes up soon.