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Thursday, July 8, 2010 | 9:03 p.m.
The state Gaming Control Board recommended approval of a slew of new licenses today from an all-star list of Southern Nevada’s biggest casino companies.
In the process, regulators checked the pulse of the state’s dominant industry, finding it to be stagnant.
The three-member board unanimously recommended licenses for representatives of MGM Resorts International, Harrah’s Entertainment, Wynn Resorts, Boyd Gaming and Colony Resorts, gleaning information from each applicant.
Most of the prospective licensees had prior dealings with regulators and clean records, giving the board the opportunity to ask about business in general. The Nevada Gaming Commission will consider the recommendations July 22.
Among the highest ranking executives before the board was Marilyn Winn, senior vice president of Harrah’s Entertainment, who is seeking licensing as company officer and key executive.
Winn oversees Harrah’s Paris-Las Vegas, Bally’s and Planet Hollywood properties. She said the company has spent the last four months transitioning Planet Hollywood into a Harrah’s operation after regulators earlier this year approved its acquisition from a team headed by Planet Hollywood co-founder Robert Earl.
“In four months, (Planet Hollywood’s) revenue is up and gaming revenue is up,” Winn told board members. “What we’re trying to do is to turn it from a high reliance on leisure customers to gamers. With its location nearly across the street from CityCenter, we think it’s a great opportunity to sign people up for Total Rewards (Harrah’s loyalty card program).”
Board member Randall Sayre questioned Winn about the company’s efforts to reopen Prive, Planet Hollywood’s controversial nightclub.
A year ago, Planet Hollywood agreed to pay a $750,000 fine — $250,000 of which would be waived if the property stayed out of trouble for a year — for lax oversight of procedures.
Operators were accused of serving alcoholic beverages to minors, removing drunken patrons from the nightclub and leaving them unsupervised in the casino and assault.
The nightclub was operated by the Florida-based Opium Group, but Planet Hollywood was punished as the gaming license holder.
The Opium Group has since filed for Chapter 11 bankruptcy protection and when Harrah’s became the new owner of the hotel, it terminated the company’s lease.
Winn said her company has issued a request for proposals to operate the nightclub but has yet to reach a decision on an operator.
“We think Planet Hollywood needs a nightclub and hopefully by early next year, we’ll have one,” she said.
She said the Harrah’s security team would oversee activities at the nightclub when operations begin.
In a separate matter, an applicant for a license as a key executive for Wynn Las Vegas also sang the praises of the nightclub industry.
Scott Peterson, senior vice president and chief financial officer of Wynn, said nightclubs “have been a revenue home run” for the company and that by percentage they outshine all other revenue streams in the resort.
Peterson, who has been with Wynn for 17 years and spent four years starting up Wynn’s operation in Macau, said it’s a good thing the Chinese property is doing well because in Las Vegas, “we’re making less now than we were three years ago when we only had one property.”
He said the American influence in Macau has made it a better gaming destination because local operators are getting more accustomed to Western ways.
In an earlier hearing on an amended order of registration for Wynn, Matt Maddox, chief financial officer for the company, told regulators that baccarat play has saved the company’s gaming revenue for several months and that Las Vegas “has been doing about the same for months and months and months.”
In other business, the board recommended approval of:
• The suitability of Dominick Ragone, secretary and chief financial officer of Icahn Enterprises, as an officer of the company. Ragone did not disclose any new details about Icahn’s plans for the dormant Fontainebleau property on the north end of the Strip.
• The licensure of David Monahan, CEO and general manager of Colony Resorts’ Las Vegas Hilton property. Monahan told regulators “it’s a fight every day” to make money at the property adjacent to the Las Vegas Convention Center, but future bookings are strengthening and that convention attendance is growing. “We’re bullish on the convention side for the coming year,” he said.
• The licensure of Donald Thrasher, president of Circus Circus Casinos, Jean Development Co. and Railroad Pass Investment Group, as an officer and key executive. Thrasher said Boulder City retirees, one of the core markets for the Railroad Pass Casino, have pulled back in their spending like most casino customers.
• The licensure of American Wagering to establish a Leroy’s Horse and Sports Place location only for sports wagering at The Poker Palace in North Las Vegas. Current Poker Palace owners will continue to operate the casino’s race book.
• The licensure of United Coin Machine Co. to operate a temporary casino on July 27 at the site of the Queen of Hearts Hotel in downtown Las Vegas to preserve a grandfathered gaming license at that location. City officials still hope to develop the site into a new City Hall building, but property owners decided to preserve the ability to host gaming if the City Hall project doesn’t get off the ground.
• The licensure of Christopher Fiumara, vice president and general manager of the Santa Fe Station, as a key employee, and George Hirsberg, treasurer, senior vice president and chief financial officer of Boyd Gaming, for suitability as an officer. Fiumara said the locals gaming market continues to be one of the hardest hit in the industry because thrifty customers are continuing to search for value.
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Locally owned and independent for more than 50 years.
How are places like Red Rock, Aliante and Green Valley Ranch covering their overheads?
i though city center was going to save this city
Good news,thank you.
All a bunch of corporate backwash! Bring in some real gambling operators and things would vastly improve around here..
Where is Moe Dalitz when you need him.
Peterson, who has been with Wynn for 17 years and spent four years starting up Wynn's operation in Macau, said it's a good thing the Chinese property is doing well because in Las Vegas, "we're making less now than we were three years ago when we only had one property."
Dropping hints as to the future of Las Vegas?
Gaming is stagnant but tourism was up 4 percent for May. I think the picture of Vegas has changed, gaming is not the draw. People come to Vegas because of the affordable room rates, have a good meal and see a show. Gaming is a luxury that people can nolonger afford or justify as an expense. Nevada and Las Vegas need revenue and we need to rely on better sources for revenue than tourism. I think the Chamber of Commerce needs to sell Las Vegas and Nevada as a retirement destination, retirees have revenue. Nevada has just as much if not more to offer than Florida.
Scott Peterson, of Wynn, said nightclubs "have been a revenue home run" for the company and that by percentage they outshine all other revenue streams in the resort.
Pay doorman 10.00 hour Charge $80 pp x thousands per hr nightclub
Pay 8 bucks for bottle of jack daniels, sell for 125
Pay 20 bucks for C champaign, sell for $375.00
Well duh, dumb customers, = Pork profits
hey EXPRESS445...
love the cheap (FREE) rooms but the shows & meals are ridiculously expensive. last show i saw was KA (about 2-3yrs ago) at $300 for two people. the last high end meal i had was at ballys sunday brunch at over 80 bucks a pop for the 6 of us. the service was good...the food SUCKED. will never go back.
i come for the gambling & camaraderie of my friends but the odds/comps are getting so bad i may just decide to go elsewhere.
the only POSITIVE comment about LV ive read in the past year is southpoint raising the payback % on a few penny slots. yea, it doesnt sound like much but at least its its something positive for the player/gamer. its a little hope that the others (MGM/HARRAHS) will soon follow their lead.
"All a bunch of corporate backwash! Bring in some real gambling operators and things would vastly improve around here.."
Envior, I thought you were the smartest damn person in the industry. Why aren't you freaking running a casino if you are some freaking smart. Put up or shut up.
If gaming is so stagnant, why are executives making more money than ever??? All casino executives from WYNN, Venetian, and MGM are making record salaries and stock options in this stagnant economy. Gaming needs to watch the accounting books a little better and raise the gaming tax to a fair level. The gaming tax hasn't been raised in 25 years. Amazing fact considering that all other Nevada taxes have been raised multiple times in the last 25 years. Nevada Gaming is in bed with big casino corporations, by the way lets keep paying teachers $28k per year and ambulance drivers $11.00 per hour. Nevada's new motto "One Nation Under Corruption..."
The party crowd will be broke soon...Maybe the gamblers that made the town will get a break..
LOL Dave the idiot in charge of the LV Hilton - he'll destroy that place in less than a year... How's those stripper poles working out for ya Dave? Did you even bother to learn about your demographics before you set about your path of destruction??? You do realize a whole department works on analysis don't you? Maybe you just really HATE Nick Ribis? Hmmm....
i though city center was going to save this city.
City Center had a great start for about 2 weeks. It has been losing wads of money since then.
Just when we needed it Cosmopolitan is opening in DEC. Expect them to COMP
rooms in FEB. I wonder what their motto will be. Looser slots, Inexpensive rooms and restaurants , good service and moderate price shows.It might work.
Back in the day it was all about gambling.
Sure you hung out at the pool during the day, ate meals and saw shows, but it was "all about" getting to the green felt tables.