Book review: The Devil and Sherlock Holmes

David Grann. The Devil and Sherlock Holmes: Tales of Murder, Madness, and Obsession. New York: Doubleday, 2010. 352 pages.

Great non-fiction is just as suspenseful and revealing of the human condition as great fiction. With The Devil and Sherlock Holmes, David Grann gives the reader twelve intriguing pieces of great non-fiction.

The collection starts with a short introduction in which Grann lays out the thematic (though not topical) unity of the book: each of the pieces is, in some way, about sleuthing. Whether its investigating a murder, looking for a half-mythical sea creature, or seeking to recover lost memories, the people who move through these pages are all looking for something.

After the introduction comes the chapter which likely gave the book its title: an investigation into the death, under mysterious circumstances, of the world’s foremost Sherlock Holmes expert. If this were an episode of a TV police procedural, most viewers would dismiss it as ridiculously contrived: the expert, who was himself unraveling the mystery of a cache of lost Holmesiana, was found dead of an apparent suicide that would have baffled the Baker Street detective himself. Grann not only hooks the reader into the case; he gives the reader a glimpse into the world of Holmes devotees, a group that makes Trekkies look like they treat Star Trek with a casual irreverence. But Grann doesn’t make them into geeks or misfits; he instead communicates the enduring appeal of Holmes in an increasingly chaotic world in a way that might have you checking a few Arthur Conan Dolye books out of the library. I can’t think of any better testament to Grann’s skill or style as a writer.

Other stories are no less riveting. Some of the more gripping ones are the tale of Krystian Bala, a would-be philosopher and author whose novel was used as evidence at his trial for murder; walking with Kevin Shea, a firefighter who survived 9/11 but is still tormented by his inability to remember what he did on that day; and a ride-along with the sandhogs, subterranean construction workers who have been building water tunnels under the streets of New York for generations. Those are just a few of my personal favorites, but every story in this collections sheds light on something meaningful in an interesting way. The pieces are all brief, but deep.

The bottom line? This is an outstanding collection of non-fiction that will whet your appetite for more.

Latest GFJ: The Power of Twitter

My much-anticipated Green Felt Journal piece about casino tweeting–which inspired me to finally claim @unlvgaming and get to work–is out, in today’s Vegas Seven:

Casinos are always looking for new ways to reach customers. So it’s no surprise that they’ve embraced Twitter, the popular social networking application that lets anyone tell the world, in 140 characters or less, “what’s happening.”

Casino tweets range from straight-up promo offers TI Suite Sale $50 F&B + 20% Off Spa / Also $61 Strip View w/free breakfast to single-sentence press releases Celine Dion is returning to @CaesarsPalace and will be back home at the ColosseumatCP 3/15/2011! to actual interaction with followers Hey #vegas tweeps, come introduce yourself this Saturday night! #stationsocials.

On one hand, it’s great that casinos are connecting with potential customers, whether it’s by smoke signals or Short Message Service. On the other, just because you can do something, it doesn’t mean you should. Does all of this tweeting, retweeting and following actually add anything to the bottom line, or is it just sound and fury for the sake of sound and fury?

via Tweets connecting casinos with potential customers | Vegas Seven.

It was a fun piece to write, and I learned quite a bit from my talks with Brandie and Hunter (though to be fair, I get to talk to Hunter every few weeks on the Vegas Gang). With an Advertising and New Media Summit at the next Casino Marketing Conference, it’s clear that social media is increasing in importance for casinos, just as it is for other businesses.

100% Aria cell service by end of March

It just had a great talk with Bobby Baldwin about Aria for an article I’m writing for Vegas Seven about the first 100 days of CityCenter.

Talking to people at the property and online, and having gotten too few bars there myself, one of the questions I asked him was about cell phone service.

His response:

“The building has one of the most sophisticated cell phone antenna networks around, but unfortunately we didn’t get all of the business done before opening. All the deals are now done, and we’re going to have 100% coverage. AT&T will be turned on by next week, and Verizon by the end of the month.”

So there you have it: If you’re booking travel to Las Vegas soon, you’ll be able to talk, text, and twitter with no limits at CityCenter.

Given that you can count on one (or maybe two) hands the people in town who have more experience than Mr. Baldwin at opening up major resorts (Mirage, Treasure Island, Bellagio, re-opening Beau Rivage after Katrina), he’s got a great insight on the first 100 days. I’ve already collected a great deal of information from guests, and I’m looking forward to talking to a few other folks at the company and getting the article done.

Gambling tips from the IRS

Here are some reminders from the IRS about what to do with your gambling winnings and losses:

# Gambling income includes – but is not limited to – winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.

# Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G and may have withheld federal income taxes from the payment.

# The full amount of your gambling winnings for the year must be reported on line 21 of IRS Form 1040. You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form.

# If you itemize deductions, you can deduct your gambling losses for the year on line 28 of Schedule A, Form 1040.

# You cannot deduct gambling losses that are more than your winnings.

# It is important to keep an accurate diary or similar record of your gambling winnings and losses.

# To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.

via Gambling Winnings Are Always Taxable Income.

There you have it. As fate would have it, I was asked a question about gambling and taxes yesterday afternoon, and decided to look this up. I thought it might be of interest to others.

AC native Jacob Lawrence in Casino Connection

My Atlantic City history column in March’s Casino Connection has nothing to do with gambling. Instead, I look briefly at the career of an artist who was born in Atlantic City, Jacob Lawrence:

Dozens of notable figures have played a part in Atlantic City’s history, from Thomas Edison and Diamond Jim Brady to Jay-Z and Donald Trump. Yet few people know that one of the most respected American artists of the 20th century was born here.Jacob Armistead Lawrence’s family was part of the “Great Migration” during and after World War I, in which thousands of black Southerners moved North in search of better lives, far from Jim Crow. The Lawrence family came to Atlantic City, where Jacob was born on September 7, 1917.

via Jacob’s Ladder | Casino Connection Atlantic City.

I enjoy the chance to write about non-gaming/hospitality topics, particular for the Atlantic City column, and have a few more planned in the near future. Of course, next month I’m tackling a little Trump Taj Mahal history in honor of the 20th anniversary of its opening. It’s hard to believe it’s been that long. I remember when the New Delhi Deli was the hot new restaurant in town–it was replaced by the Hard Rock a long time ago.

Lawrence was an interesting subject because he didn’t live in the city for long, but was clearly the kind of artist who picked up a great deal from his surroundings, so his early influences might have had an important role in shaping his work.

From slots to strippers

That’s the trajectory at Bill’s Lake Tahoe. From the LVRJ:


Harrah’s sells Bill’s Lake Tahoe casino site

It’s hard to say what Bill Harrah would have thought about this. On one hand, he was by no means shy around women–he was married seven times. On the other hand, he wanted Harrah’s Lake Tahoe to be, above all, a classy facility, and insisted on things like two bathrooms in a guest room. I think they still have the original commode-view TVs installed, but that’s beside the point. Somehow having a strip club out front doesn’t scream “class” to me, but times have changed since Bill was running the place.

From an economic point of view, that’s 310 slot machines that Lake Tahoe and the state won’t be getting back, and a further sign of the area’s decline as a gaming spot. It’s still a very attractive destination, though it’s hard to really reconcile a strip club with Tahoe as I see it.

Bankruptcy in Mesquite

Black Gaming, which operates 3 casinos in Mesquite, Nevada, has declared bankruptcy. From the LVRJ:

In statements last year, Black said the company was generating cash flow but was unable to manage its high amount of debt. Black, a longtime Las Vegas real estate developer, said the challenging economy of the past 24 months hurt the casino operator.

via MESQUITE CASINOS: Black Gaming LLC files bankruptcy – Business – ReviewJournal.com.

How bad are things in Mesquite? Pretty bad.

In 2007, the four casinos there made almost $167 million. Last year, there were only three casinos active, and they made just over $120 million. That’s about a 28% drop in business for the area over two years. Even without the added debt expense, that’s a tough nut to crack.

For reference, in 2007 (before things went south), the Balance of Clark County casinos, which include Mesquite, had an average overall income of 3.8% of revenues. That’s not as good as the Strip casinos, but it’s still an indicator of a profitable business. In 2009, casinos in that reporting area showed a net loss of 53.9% of all revenue–clearly an epic fail. Of course, these aren’t just Mesquite (Primm is another area included here), but this is clearly not the best time to be running a casino outside of the tourist corridor.

Although, to be fair, Strip casinos were also unprofitable in 2009, with a combined net loss of 30.2% of revenue. About $3 billion of the $4 billion loss was due to interest and depreciation expenses. It’s hard to see how these sorts of losses can be sustained for much longer without more bankruptcies coming, even in Las Vegas.

Gambling Goes Mainstream | Global Gaming Business Magazine

At the “opening ceremonies” for Aria, U.S. Green Buildings Council CEO Rick Fedrizzi said that Aria was an example of what architecture should be, and that schoolchildren should be brought in to see the building for itself as an example of what the future would be.

“Wow,” I thought, “Bringing kids to a casino to to be inspired. That’s something I haven’t heard before.” So I thought that maybe this was evidence that gambling was becoming even more mainstream in American culture.

Around that time, NBA commissioner David Stern said that his league was now willing to talk about supporting legal sports betting. Again, this seemed like a historic shift in attitudes.

With a little editorial suggestion, I put these and a few other ideas together, did some additional research, and the result was a featured story in the March 2010 Global Gaming Business magazine:

If you're reading Global Gaming Business, odds are you're pretty comfortable with the idea of gambling as an acceptable leisure pastime for adults. You're not alone, and you haven't been for a long time: Since the past decade, about one in five Americans has visited a casino at least once a year. With legal casinos breaking out of Nevada in 1978 and spreading steadily across the nation, there has clearly been a tolerance-at first often grudging-for casinos.

Yet the past few months have given the impression that gambling has now reached unprecedented levels of public sanction that goes beyond toleration and reaches toward outright approval, a historic change in attitudes.

via Gambling Goes Mainstream | Global Gaming Business Magazine.

I’d say this is evidence that we’ll see more, not less, gambling soon, and I wouldn’t be surprised to see online poker be the next big domino to fall. There is a vague public support for it and a smaller group of devoted players who would be grateful to any politicians who voted for it, but more importantly there are well-funded parts of the industry now in favor. I’m not enough of a political scientist to say whether the current partisan politics will make any specific bill more or less likely, but looking at it from a general cultural and historical perspective it seems that in retrospect no one will be surprised when this happens.

Occasional Papers Series

The Center for Gaming Research is rolling out a new feature: the Occasional Papers Series. Drawn mostly from research conducted by visiting fellows and UNLV students, this series is going to discuss research into gambling and related issues.

The first paper is out: Seeking Value or Entertainment? The Evolution of Nevada Slot Hold, 1992-2009, and the Slot Players’ Experience. It’s a look at how slot hold patterns have changed over the past 18 years that looks beyond the games themselves to changing technologies, player preferences, and the overall gambling experience.

I volunteered this paper to be first in the series because there were several bugs to work out along the way, and I didn’t want to subject any of the talented authors who are contributing to them while we found our feet. Look for the next paper to come out within the next few weeks, and for several others in the months to come.

I started writing this paper after listening to people claim that the reason gaming revenue was plummeting was that the casinos had tightened the slots too much. That seemed to make sense, so to back up these subjective arguments I did a little bit of statistical research. I learned that yes, slot hold percentages had increased quite a bit since the mid-1990s, but found that there seemed to be more factors in play than executives tightening the machines. There were two big bumps in hold percentage–in the late 1990s and a few years later–that coincided with two major shifts in slot technology, and the changes in the slot mix–low-denom, high-hold games pushing out high-denom, low(er)-hold games were a complicating factor.

Also, slot hold didn’t respond to consumer demand the same way that hotel room rates did. After several years of rising rates, occupancy fell in 2007-08. In 2009, rates started to lower, and occupancy went up. There’s nothing that direct in slot hold trends that suggests casino managers have the same deliberate strategies in managing “price” as hotel managers. Instead, the best explanation in looking at why slot hold continued to rise in a recession is that the most popular machines continued to be the ones with the highest hold. Generally, slot managers look for a slot mix that optimizes their revenues, so they listen to players: they’ll take out under-performing machines and add more of ones that get more play.

We’ve got some interesting papers coming up, including one on the legend of Bugsy Siegel, so stay posted.

Now that I’m done with slot hold for a while, I’ve got three other projects I want to work on. The first is a look at capital expenditures in Atlantic City casinos. Since they track this by casino, as well as revenues, it will be possible to investigate whether companies that invest money into their properties are better off than those that don’t. My hunch is that the answer is yes, but to my knowledge no one has actually looked at the numbers to see if this is true. The second is a study of casinos and labor. With so much become mechanized, casinos have become less labor intensive. It would be nice to quantify this, because proposals to legalize casinos frequently highlight job creation, and it’s important for people to know just how many jobs might be created. The third is casino debt. It seems obvious that casinos have taken on too much debt, but it’s important to see exactly how and why this happened so we’ve got some way of preventing it from happening again. This is in addition to the work that the fellows are doing, and the statistical abstracts that are being posted, so the Center will continue to be busy in the coming months.