Our long national nightmare is over

Yes the Tropicana Atlantic City, which was “repossessed” by the Casino Control Commission over a year and a half ago, has finally been sold…to Carl Icahn. From the AC Press:

Tropicana Casino and Resort, once expected to fetch $1 billion or more, was sold today for $200 million to a group of lenders headed by billionaire financier Carl C. Icahn.

A bankruptcy court judge approved the sale agreement, culminating an 18-month quest for new ownership that began when the economy was strong and ended with it in a deep recession.

Icahn and his fellow lenders, who already hold a $1.4 billion mortgage on Tropicana, timed the market downturn perfectly by stepping in when no other investors were willing to bid to drive up the price.

"There is basically no other option available at this point," U.S. Bankruptcy Court Judge Judith H. Wizmur said while approving the sale to the Icahn group.

The deal is pending regulatory approval by the New Jersey Casino Control Commission and a final closing, a process expected to take until year's end.

Tropicana went on the market in December 2007, when the troubled former owners were stripped of their New Jersey gaming license for mismanagement and regulatory violations.

Bankruptcy judge approves $200M. Tropicana sale to Icahn group.

Since Icahn specializes in turning around distressed properties, this might not be an entirely bad thing. Yes, there’s the sad example of the Sands in Atlantic City, but the Stratosphere here in Vegas ended up being a win-win-win: he took the casino out of bankruptcy, ran it successfully, and sold it at a profit. That’s how the game is played.

At this stage, the Tropicana brand name has suffered such severe collateral damage in Atlantic City that I wonder whether a complete re-branding has been contemplated, since the casino is no longer owned by the parent of the Las Vegas Tropicana. I also wonder whether being a standalone property will change anything about the way it’s marketed.

Global slot scheme

I think this story from KLAS really demonstrates what a global business gambling has become:

Federal prosecutors have charged two men with conspiring to sell counterfeit video slot machines bearing the name of the Reno-based International Game Technology.

The two men include a 43-year-old Cuban national accused of selling the slots in Latvia.

Rodolfo Rodriguez Cabrera and 35-year-old Henry Mantilla of Cape Coral, Fla., also are accused of selling counterfeit IGT computer programs in the seven-count indictment that was returned by a federal grand jury in Las Vegas in April and unsealed on Wednesday. Justice Department officials say Cabrera was arrested Monday in Riga, Latvia.

Mantilla is scheduled to appear on a summons in federal court in Las Vegas on July 2.

If convicted, each faces up to 45 years in prison and more than $5 million in fines.

Feds: 2 Conspired to Sell Counterfeit IGT Slots – Las Vegas Now |.

Here’s the lesson we can learn from this: don’t try to sell rip-off IGT slots. That prison time makes slot cheating look like jaywalking.

UNLV Gaming Podcast 10 posted, Xanadu rebooted

I’ve got thrilling new podcast up over at the UNLV site:

10-June 9, 2009

Dylan Evans, University College, Cork

At the 14th International Conference on Gambling and Risk-Taking, Dr. Schwartz interviews Dr. Evans, who presented a paper on the risk intelligence of expert gamblers. When it comes to assessing risk, expert gamblers are far better than doctors, even good ones.

UNLV Center for Gaming Research: Podcasts.

It’s good stuff–if you’re interested in participating in Dr. Evans’ study, visit his website: http://www.dylan.org.uk/.

I’ve also rebooted the Paradise Misplaced website, so you can discover all the fun that was the unbuilt Xanadu hotel yet again.

UNLV gaming talk later this month

Just in time for the World Series of Poker, we’re having a very special Gaming Research Colloquium Series talk at UNLV:

June 25, 2009

Gaming Research Colloquium Series: Dr. Ole Bjerg, Copenhagen Business School

"Whats in a Game? The Co-Evolution of Poker and Capitalism"

Thursday, June 25, 12:15 PM

Special Collections Reading Room

View flyer (pdf)

Center for Gaming Research: Special Events.

This should be a provocative talk about how the histories of poker and capitalism intersect.

Book Review: Tide, Feather, Snow

Miranda Weiss. Tide, Feather, Snow: A Life in Alaska. New York: HarperCollins, 2009. 288 pages.

This memoir is an exploration of how one woman abandoned the known for the unknown–in this case, south central Alaska. Weiss, who was born and raised in flat suburban Maryland, shucked off most of her preconceptions when she moved to Homer, Alaska, with her boyfriend. Once there, she found both sublime beauty and deep frustration.

Weiss is extremely adept at describing the physical landscape–how the bay changes twice daily with the tides, the look of the area buried in snow, the accumulations of junk that are ubiquitous in Homer. She’s less skilled here in communicating how people interact–there isn’t much dialogue with her boyfriend or the other people she’s obviously close to, which limits the reader’s ability to see them as distinct characters. As a result, the centers on Weiss’s personal journey.

The reader gets a vivid portrait of Homer, Alaska, in all of its natural beauty and ugliness. It’s a land that’s both wide open and claustrophobic. Life “off the grid” can be liberating but also limiting.

Some highlights include Weiss’s descriptions of the seasonal changes, particular fall to winter and winter to spring. Covered in snow, the landscape looks immaculate, but spring–though it is a reflowering–is also a loss of innocence, with melting snow revealing rubbish everywhere.

There’s some, but not too much outside research in this book–we get the basics of Alaskan history, but no extended treatises on the subject. This seems to be in keeping with the current trend in creative non-fiction. For example, towards the end of the book, Weiss is on the Yukon-Kuskokwim Delta, where she says that “sought some insight into” the indigenous Yup’ik men assisting the expedition who live in (relatively) nearby Chevak. But she says, “they said little, just chuckling with each other softly as they worked.”(209) Where a John McPhee would have dug up a surveyors report from the first Russian expedition to encounter the Yup’ik or a more recent sociological survey of the village, Weiss adds nothing more. That’s not entirely a bad thing, since blocks of exposition might drag down the narrative, but it might have built the sense of scale.

In short, this is the story of one woman’s life in Alaska. It’s not comprehensive–nor does it claim to be–but it’s filled with fascinating, well-illustrated images and insights.

If a red flag is flying, brazen bold against the blue…

Taking a minute from the grind of analyzing the April Nevada gaming revenues, I figured I’d post this story, which surprisingly hasn’t really been picked up by the Vegas blogosphere. From KLAS:

The Raelian Movement is announcing plans to build a UFOland in Las Vegas where visitors can attend a Happiness Academy and see a full-size replica of a UFO.

Raelians believe that humanity was created by extraterrestrial scientists and they want to share their belief with visitors to Las Vegas. They will also host a museum and a 1000-seat theatre where their spiritual leader, Rael, will give lectures.

"The museum will display all the evidence weve gathered for the past 35 years that shows we were indeed created by scientists — highly advanced human beings from another planet," said Ricky Roehr, leader of the North American Raelian Movement.

He said he expects the UFOland to become one of the most popular destinations in Las Vegas within the next five years.

There is no word on where UFOland will be built.

The Raelians Target Las Vegas for a UFOland – Las Vegas Now |.

If I recall correctly, these are the same folks who announced that they’d cloned a human being several years ago.

I wonder if they’ve spent much time in Las Vegas, though. Unless Rael is going to do impressions, magic, ventriloquism, comedy, or all four, I can’t see him filling the room.

I’m not entirely convinced that calling their spiritual center “UFOland” and putting it in Las Vegas is the best way to establish their legitimacy. Slot machines did pretty well for the Fosterites, so maybe I’m wrong here.

Talking online gambling on KNPR

This morning I joined KNPR’s State of Nevada host Dave Berns and poker legend Howard Lederer in studio to talk about the Frank bill and the proposed legalization of online betting in the US:

Americans are expected to lose $22 billion next year via Internet betting, although the practice is technically illegal in this country. We talk with online betting supporter, Rep. Barney Frank, D-Mass., and UNLV Prof. David Schwartz.

Online Betting: News 88.9 KNPR – Nevada Public Radio.

Les Bernal, of Stop Predatory Gambling Now, and Arnie Wexler, a problem gambling counselor, rounded out the discussion. Rep. Frank was on via the magic of a previously-recorded interview.

Lederer made several cogent points about how online poker sites work, and addressed some of Bernal’s accusations about predatory gambling and online poker.

If it isn’t clear enough in my answers in this excerpt, my position is that gambling online is far more similar to gambling off-line than it is dissimilar. Any of the concerns that can be raised about online gambling–including addiction and fraud–could also be leveled against gambling off-line. This doesn’t, however, mean that online gambling shouldn’t be legalized. Rather, we simply need to be realistic about our expectations of what it will and won’t entail.

Throughout American history (indeed, world history), there have been real discussions about the role of gambling in society. At some times, it’s completely outlawed. At others, it’s tolerated on the margins, and, as has become increasing common, it’s often legalized and promoted.

Once the decision is made to take gambling out of the back alleys, distinctions between what kinds of gambling are permitted begin to confuse the issue. As I said on the air, is there really that much of a difference, from a public policy standpoint, over whether someone takes $50 and buys instant lottery tickets at a convenience store or uses that $50 to set up an account and play poker? They’re both gambling, after all.

If states not only allow, but actually encourage people to do the former, why not allow them to do the latter?

I think that both those who support online gaming and those who are opposed to it have gotten too far away from this basic question. Emotions run high on both sides of the issue–those who want to play online see any prohibition as trampling their liberty, and those who fear the expansion of gambling see the threat of a “casino that never closes” in every dorm room.

In the United States, there is no fundamental right to gamble. In two states, gambling of any kind is entirely illegal. The other 48 states, however, allow various forms of gambling. In this case, the question stops being one of crime control and starts being one of regulation. Privileging one form of gambling over another–lotteries vs. casinos in South Carolina, or casinos vs. lotteries in Nevada–can be seen as hypocritical and archaic.

Likewise, there are already “casinos that never close” within a short drive of most Americans. In fact, federal, state, and local governments spend millions of dollars to maintain infrastructure that allows citizens to access these casinos anytime they wish. But no one would argue that we need to dismantle the roads because they can bring people to casinos.

New podcast up

I was lucky enough to get three good interviews with people who spoke at the 14th International Conference on Gambling and Risk-Taking last week, and I’ve uploaded the first of them: a twelve-minute chat with Dr. Douglas Walker, who spoke on how the social costs of gambling are used and abused and casino crime.

You can go to the UNLV Gaming Podcast page, iTunes, or get it here:

09-June 3, 2009
Douglas Walker, College of Charleston, author, The Economics of Casino Gambling
At the 14th International Conference on Gambling and Risk-Taking, Dr. Schwartz interviews Dr. Walker, getting his perspective on the applicability of “social cost of gambling” studies, casinos and crime, his latest book, and more.

It’s a great listen for anyone who’s interested in how policy is shaped by the academic study of gambling.

Marina not wasting away

You can probably order a margarita at the Shell, but Trump Marina isn’t turning into Margaritaville anytime soon. From the AC Press:

An agreement to sell the aging Trump Marina Hotel Casino and transform it into a Margaritaville-themed gaming hall was terminated Monday, after the expected buyer failed to close on a deal by last week’s deadline.

Talks had continued over the weekend between Trump Marina’s parent company, Trump Entertainment Resort Inc., and Coastal Marina LLC, with the possibility that the sale deadline would be extended.

But Trump Entertainment CEO Mark Juliano said his company decided instead to end the agreement after receiving a letter Monday from Coastal’s lawyer claiming Trump Entertainment had breached its contract agreement by engaging in “fraudulent activity.”

*

Juliano said his company was being accused of diverting customers and business from Trump Marina to the other two Trump-owned properties in Atlantic City, Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino. He said Coastal also claimed that Trump Entertainment “knowingly did not perform in good faith.”

Juliano denied those charges.

Deal to buy Trump Marina casino is off.

It’s going to be difficult to get anything at all for the Marina. It’s got a great location, but is one of the worst-performing casinos in the city. This April, it made about $13.6 million, less than Resorts, the Hilton, or Trump Plaza, and about 1/3 of what the Borgata pulled in.

That being said, the property has great potential,with the Farley marina directly adjacent. If someone bought both it and the bayside MGM land (not the Borgata-adjacent MGM Grand AC tract), they could build something phenomenal. But anyone who’s looking to build in Atlantic City right now either isn’t thinking right or sees something that no one, including those who’ve got billions invested in the market, can see.

Casino manager murdered in AC

This story is just appalling: a disgruntled patron shot a Trump Taj Mahal casino executive in cold blood, allegedly because he was frustrated by his roulette losses. From the AC Press:

Despite his claims that he racked up millions of dollars in gambling losses, the accused killer of a casino supervisor actually won $1,100 this year playing roulette at Trump Taj Mahal Casino Resort, a Trump executive said.

Gambling records dating to 1995 also show that Mark E. Magee lost $6,435 at the Taj Mahal’s gaming tables in the past 14 years, according to Mark Juliano, chief executive officer of Trump Entertainment Resorts Inc.

Juliano said the casino’s records suggest that Magee lied when he told police investigators that he was a compulsive gambler who has lost millions over the years. Magee also claimed that casino had cheated him by rigging the games.

“He’s lost $6,435, so his math is a little off,” Juliano said mockingly in an interview Saturday.

Calling Magee’s cheating allegations “ludicrous,” Juliano said New Jersey’s tightly regulated casino industry and the Taj Mahal’s own financial controls make it virtually impossible to fix games.

“I think it’s important to refute the idea that anything could happen because it’s impossible because of the controls we have in place,” Juliano said.

Magee, 57, of Norristown, Pa., is accused of gunning down Taj Mahal shift manager Raymond Kot near the casino floor on Wednesday. He has been charged with murder and weapons offenses and is being held in the Atlantic County Jail on $1 million cash bail.

Police investigators in Norristown said Magee claimed that, in the past three or four years, he would always be winning at the roulette table until a casino manager he knew as “Ray” — apparently referring to Kot — would arrive. Magee said he believed Ray would then make a call to someone to rig the game, and the losses would start.

“His intent was to kill someone from upper management from the casino because they were responsible for him losing his money,” Norristown Detective Raymond E. Emrich wrote in a police affidavit.

Trump executive says alleged killer lied about gambling losses, rigged games.

Most of you know that I used to work at the Taj, and I remember Ray Kot from my time there. We didn’t know each other socially or anything, and interacted about as much as you’d expect a very junior surveillance operator and a senior casino manager to. But I remember him as a nice guy who knew his job well and seemed to enjoy doing it.

Magee’s claims are ridiculous. Even if you accept the dubious proposition that a casino manager could somehow affect the outcome of a roulette game by making a phone call, the story makes no sense. If he started losing every time Kot came on shift for the past three or four years, why didn’t he just cash out and walk over to Showboat or Resorts when he saw Kot arrive? There are covered bridges to both properties, so he wouldn’t even have to go outside. It would take maybe ten minutes to cash out, walk over, and buy in. It’s tragic that a good man with a family lost his life for something as senseless as this.

That being said, this murder might prompt casinos to review their security profiles. I can’t see American casinos installing metal detectors at the door like Macau casinos do, but increasing on-floor security and giving them better training in recognizing and dealing with situations like this–where a distraught man was apparently stalking Kot–wouldn’t infringe on the freedom of guests and would greatly increase the safety of both guests and employees. There was recently a murder at Caesars Palace here in Las Vegas, where the victim–a casino restaurant employee–and the alleged killer knew each other. In an open society, there will always be tension between crime prevention and liberty, so there’s no easy answer to this problem. This murder could have happened anywhere–in a restaurant, a hospital, or a school. But people often have the presumption that casinos are safer than other institutions because of the increased security profile. Unfortunately, that’s not always the case.