Casino Review Suggestions

If there are any suggestions for specific portions of properties to review (e.g. High Limit, Video Slots, Table Games) or restaurants to visit please drop me a note as I am currently planning my December schedule.

Regards,

Mr. Casino Reviewer

Little River Layoffs

Not much of a surprise up in Manistee...

The Little River Casino announced a ~100 layoffs that were 'economic in nature'. I would figure to see a bit more of this as the recession continues...

Casino lays off 100

However while they are laying off current operations employees, their strategic vision is still going strong with the acquisition of the former 'Great Lakes Downs' racetrack and adjoining properties. Fully expect to see a major casino being constructed in Muskegon in the next several years as this is the only potential development opportunity that 'The Musk' has on the horizon.

Indian tribe rolling dice on land acquisitions

Greektown Casino Sets Record Straight

As I've stated previously, I don't have any fear that this will impact Casino Operations, this just has the potential for the 'Perception Becomes Reality' effect to further impact their finances...

From Greektown Casino Press Release:

DETROIT — The following can be attributed to Joe McCoy, Chairman, Greektown Casino Management Board. McCoy is commenting on recent developments and reports of Greektown Casino’s Chapter 11 reorganization.

Contrary to certain exaggerated claims you may have read or heard in the news media, Greektown Casino is open for business, will continue to be open for business, and is not in danger of "running out of cash" and "closing in December." Such claims are false.

It is widely known that in May, Greektown Casino filed for Chapter 11 bankruptcy protection, a process that allows a company to continue operating normally while reorganizing its business debt and business plan. Hundreds of the nation's and Michigan's largest companies are now in Chapter 11 or teetering toward it. Chapter 11 cases are always complicated and often contentious. During high-profile Chapter 11 cases, incomplete, false or speculative information finds its way into the news media. Again, claims made this week in the Greektown Casino case that we are "running out of cash" and about to close or unable to pay the construction company building our new hotel are speculative and false.

Next Friday, we will open Greektown Casino's renovated VIP gaming area. In early
February, we will open our 400-room Greektown Casino-Hotel. In recent months, many of
the nation's most venerable companies have failed due to the world economic crisis and other economic circumstances. Greektown Casino, like an increasing number of gaming and other companies, is also working through difficult and significant financial issues.

Greektown Casino Almost Out of Cash?

From the "Not so Good" file comes this...

Free Press Article

I find it absolutely incomprehensible how any casino in a 'protected' gaming market can have financial difficulties. The situation seems very elementary to me. You have revenue generators (casino games) that are 'fixed' in your favor and can be statistically quantified to forecast how much you'll earn, and you still loose money. That says one big thing to me... Bad Management. Do they understand the terms 'Cost Containment'?

There is a separate article in the Detroit News about how the City of Detroit is trying to direct a forced sale. Normally, when it comes to the City, I'm very skeptical, but in this case I can't blame them.

As I've stated before, I enjoy Greektown, but this situation is beginning to look very bad. When the word on the street is that they are low on cash, you can only help but wonder how this will effect patron visits. If someone hits a progressive jackpot (Wheel of Fortune or MegaBucks), do they say "We'll pay you next month when we have the cash?". I'm sure the MGCB (and progressive slot contracts) don't allow that, but perception can become reality in a hurry.

Detroit Casino Revenue Reports - October

The October Revenue reports are in for the Detroit Casinos and (not surprisingly) it wasn't a good month. The market share is shifting around a bit, with MGM losing out to MCC and GTC up slightly. The remarking thing to me is the revenue taxes paid out. Both MCC and GTC paid out approximately $3M in tax while MCC had $13M more in revenue. That my friend is the benefit of the permanent hotel. No wonder the Detroit Casinos aren't worried about filling the rooms, the are getting $1M-$2M a month just for having the rooms there, whether they are filled or not. I'm interested in the insight and comments from others, please feel free to post comments below.



Also interesting to note is the trending in Market Share. While GTC was up slightly versus Oct 2007, when you analyze the monthly trending, they are clearly (not surprising) losing their traction in the Market. This may be the ultimate 'clarification of the obvious', while MCC is holding steady, MGM is the improving their foothold in the market. We'll see if GTC can turn things around with the opening of their hotel in early 2009.

Source: MGCB Website

Greektown Casino Hotel - Now Accepting Reservations

Greektown Casino-Hotel is now accepting room and meeting space reservations for 2009.

The 400-room Greektown Casino-Hotel will open in early February 2009. Not to mention the best location to stay for fans attending the 2008-2009 NCAA Final Four basketball tournament at Ford Field. The hotel will feature 10,000 square feet of state-of-the-art meeting space available immediately when the hotel opens. Call 877-GCH-5554 for rooms reservations and group events

Casino Press Release

A few highlights:

The Romance Package: Deluxe overnight accommodations plus breakfast in bed, chocolate covered strawberries and champagne delivered to your room on arrival, and Bath and Bodyworks sensual amber aromatherapy products. $189 per night (Double Occupancy)

“Let the Party Begin” package: Deluxe overnight accommodations plus dinner for two in Bistro 555 and $75 in bonus play. $229 per night (Double Occupancy)

Bed and Breakfast Package: Deluxe overnight accommodations plus breakfast for two in Bistro 555. $119 per night (Double Occupancy)

I'm looking to be doing some in depth reviews of the new Detroit Casino hotels (GTC, MCC, MGM & CW) and related amenities over the next couple months. Stay tuned for additional detail. If you're interested in seeing a particular property, please drop me a note.