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Published Wednesday, Sept. 1, 2010 | 11:53 a.m.
Updated Wednesday, Sept. 1, 2010 | 1:22 p.m.
Sun Coverage
The state Gaming Control Board today recommended approval of the licensing of the company that once owned the shuttered Lady Luck casino in downtown Las Vegas.
Virginia McDowell, president and chief operating officer of St. Louis-based Isle of Capri Casinos Inc., told board members today that her company plans to enter the Nevada gaming market and will seek opportunities to develop a presence in Las Vegas.
The board, missing Chairman Dennis Neilander, voted to recommend the licensing to the Nevada Gaming Commission, which is expected to consider the matter at its Sept. 16 meeting. The licensing recommended today would enable Isle of Capri to acquire a 0.1 percent interest in Fernley Pioneers LLC, which operates a small casino in Fernley, east of Reno.
But the long-term big picture for the company is to get into the Las Vegas market.
McDowell told regulators that Isle of Capri, which operates 15 casinos in six states, would be best suited to operate a locals property in Las Vegas. The company recently was under consideration to manage four Station Casinos properties that were proposed to be spun off as part of the Station Casinos’ bankruptcy settlement. It turned out that Station management maintained control of its properties and the Isle management proposal never occurred.
Isle also was licensed and owned the downtown Las Vegas Lady Luck property in 2000, selling its interest in 2002. After two ownership changes, the most recent holders of the Lady Luck, Los Angeles-based CIM Group, closed the property in 2006.
McDowell said the company decided to sell the Lady Luck “because it was not a part of our core competency.” But after investigating the market when under consideration to run the four Station properties, the company decided it wanted to be in Las Vegas. She said a survey of her customers indicated that 80 percent of them visit Las Vegas at least once a year and it made sense for the company to have a local presence.
“It’s the ultimate gaming destination,” McDowell said of Las Vegas.
Isle was founded in 1992 by Bernard Goldstein, considered the father of modern riverboat gambling in the United States and who died in 2009. The company now operates properties in Florida, Louisiana, Missouri, Mississippi, Iowa and Colorado. McDowell said the company, which once had interests in foreign countries, is working to become strictly a domestic operation.
McDowell said she believes the downturn in gaming is directly attributable to high unemployment rates and she thinks as more people become employed, gaming revenue will increase.
“We believe it’s a cyclical business and when the cycle turns, we want to be ready for the opportunity,” she told regulators.
Isle operates its properties under the Isle of Capri and Lady Luck brands in most markets, but it does not own the rights to the Lady Luck brand in Nevada. She said any acquisition would likely take on the Isle of Capri name, but she also noted that if an opportunity to manage a property occurred, it would likely keep the existing name.
In other business, the Control Board delayed action on a request to remove an individual from the Nevada Gaming Commission’s list of denials, revocations and unsuitability findings. The board also recommended approval of the licensing of MGM International executive Dan D’Arrigo as a key executive.
Board members Mark Lipparelli and Randall Sayre opted to delay action on a request from John Bertolero to be removed from the commission’s so-called “gray list” of denied applicants. By law, licensed companies can’t conduct business with individuals on the list.
Bertolero was placed on the list in 1980 after his involvement slot-machine rigging and blackjack cheating incident, regulators said.
Because the matter involves a removal from the list, Lipparelli and Sayre opted to delay action for a month to include Neilander, who was absent due to a family matter, in the debate.
D’Arrigo, who serves as treasurer of MGM Resorts International, was recommended for licensing. During his presentation, D’Arrigo said his company continues to undertake a slow recovery in the midst of the recession.
D’Arrigo said revenue per available room was up year over year in June for the first time since 2007 and the company’s 2011 convention calendar – probably the longest-term leading indicator for future business – is showing favorable trends.
“I guess you can say things are less bad than they were,” D’Arrigo told the board.
We should welcome Isle of Capri with open arms. The casino business in LV needs some qualified competition. It has become too monopolistic over the past decade and that, along with the economy, has hurt the business. Let's hope Ichan resumes construction on the Fountainbleu and Boyd on Echelon. The sooner, the better.
The company now operates properties in Florida, Louisiana, Missouri, Mississippi, Iowa and Colorado.
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Vegas better figure out why people should KEEP coming here, before they STOP coming here.
Hint: The crap that was built over the past 15 years is not the golden goose folks. Only you newbies would think current Vegas is anything like old Vegas.
Vegas circa 1990 was profitable, sustainable, and realistic. If only she would have diversified instead of monopolized.
Current lady luck owners have obviously done a great job managing their asset. I have heard that one of the current owners is a guy that loves to yell and scream at the staff and rants and raves and pouts like a little baby. I dont know how CIM can deal with a guy like that. Good luck island of capri
The Isle (of Capri and formerly "Lady Luck") is across the River from us in Bettendorf, Iowa. They still have many of the same slot machines that were there 10 years ago!! The sister gambling boat, Rythym City, is on the River in Davenport also but have newer slot machines. However, the talk is Iowa gaming officials are talking to a couple of major casino companies to open a land based casino right near the River in Davenport. My first thought was that Harrah's is one of those companies since they have no presence in this area unless you count the two casinos near Chicago. I'm curious to see what happens.
Oh, you can win pretty well on both the Isle properties here, too.
Interesting enough, when Isle sold Lady Luck, they must have retained a use of the Lady Luck brand. They have re-branded a few of their casinos under the Lady Luck brand. Actually, they have had no problem publicising that their Lad Luck brand is reserved for their low-brow casinos! I have always been so/so about the company's assets, but the people at the helm are good. Lots of "luck"
I believe I went to the Isle of Capri in either Gulfport or Biloxi Miss about 10 years ago.If this is the place I remember it was a beat up old cruise ship converted into a casino.Low-rent doesnt even begin to describe this place. I'm guessing Katrina sunk this ship for good.
Am I correct here? Does anyone else remember this place? If I'M right is this what Vegas needs?
I hope they make it and hope that the company will be a part of the recovery of Vegas and Nevada. These are people who are experienced in their field and we need them here. We also need them to hire Las Vegas people instead of going outside to other states for employees, which they seem to be doing. When they start hireing again please publish it in Vegas only. I also desire gaming related jobs to come back like fixing slot machines.
Bundy5
I still think Isle Corp still has those casinos down south or maybe Katrina did damage them so much they couldn't open. On their website, I remember seeing Biloxi. But it sounds like a Lady Luck!! Like I said, the Isle casino here (which is a boat) has some real old slot machines, but the place is always crowded and it's not tacky. They did well enough to build another tower to their existing hotel and the hotel is always full. The buffet is pretty decent but too much money for a gaming boat in Iowa - $12.99 per person!!! And it's small. The casino that does HUGE business is on the Illinois side - a place called Jumer's. They post the highest earnings of all the casinos in Illinois consistently. Their slogan is "Vegas Without The Flight" and it is very true!! Very "Vegassy"; nice restaurants, bar, nightclub and one thing that has NOT hurt them - it is TOTALLY a NO SMOKING casino!!!
Det Munch,this was 10yrs or so ago,so maybe this one property was one of their oldies. The only place to eat there was the buffet and it was cheeeep but baaad.99% sure it was called the Isle,sticks out in my mind mostly because while eating I got a cell call that one of our dearest friends had passed away in NJ.
isle of capri - one in south florida and you cant win enough to pay for the tolls on the way home.