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Feature by Stacy Herriott & William Quinn

2000: The Year in Review
From a multibillion dollar merger to a monumental groundbreaking, the events of the past year will help shape the future of gaming

The Strip’s newest megaresort is actually the rebirth of a Las Vegas Legend: The Aladdin

Y2K may have started off with a bang at casinos around the country, but it was really just the start of what turned out to be an unforgettable year in gaming, with a stunning number of events that shocked, saddened and excited players. To celebrate the end of the year, and the start of the real millennium, we've compiled a list of events that have had, or will have, the greatest impact on gamblers, from the Pacific Ocean to Atlantic City's Boardwalk.

California Strikes Gold

One of the year's biggest events happened not in Vegas or Atlantic City, but in California. After years of lobbying, more than 60 Native American tribes throughout the state were finally granted the right to operate Nevada-style slot machines, after voters passed Proposition 1A in March. Just several months later, truckloads of some of the most popular slot machines began arriving at the casinos.

With the passing of Prop 1A in California, the coin-free Borona Casino could become a gaming hot spot

Before the reels started spinning, California tribes were restricted to "gray" games, operated without coins and paid with voucher tickets. Many of those games remain in operation, but will be upgraded to industry standards as newer machines make their way into the Golden State.

Players visiting California's Native American casinos can now expect a more traditional gaming experience, including progressive jackpots and clanging coins. Some gaming halls, such as the Barona Casino just outside San Diego, have opted to stick with "coin-free" machines, a trend that is beginning to emerge in the traditional jurisdcitions as well.

California's Native American casinos may be catching up on their slot inventory, but the vast majority are small casinos that pose little threat to traditional gaming markets. However, several tribes have begun working with major casino developers to create full-scale gaming resorts along the lines of those found in Vegas. So while most casinos are likely to remain local affairs, it's entirely possible that casinos in tourism hot spots like San Diego and Palm Springs could expand to include hotel rooms, shopping outlets and golf courses.

The latest of four Coast Resorts, Suncoast opened in northwest Las Vegas

Changing Times

Nevada's casinos may have some new competition in California, but millions of people still packed the Las Vegas Strip this year to catch a glimpse of the exploding volcano and listen to Sinatra as water fountains danced across Bellagio's lake.

Across the street and a bit south of Bellagio is the Strip's newest megaresort, The Aladdin, which opened late this summer with celebrity guest Barbara Eden. Some might have wished Eden could have folded her arms and magically blinked the resort to completion, because the $1.4 billion project, which takes its theme from the legendary "Tales of the Arabian Nights," opened its doors with several of its amenities and rooms incomplete.

But that didn't stop the resort from landing near the top of tourists' must-see lists. The Aladdin offers countless ways for guests to spend their time and money, whether gawking at the 36-foot magic lamp in the center of the casino, or walking through the Desert Passage of shops themed to suggest ancient trade routes.

Shortly after the belly dancers started wiggling their tummies in Aladdin's lobby, the Suncoast casino opened in northwest Las Vegas, boasting more than 2,000 "cashless" slot machines. The Suncoast, fourth gem in the Coast Resorts crown (which includes the Barbary Coast, Gold Coast and the Orleans), has taken slot machines a giant step forward with the incredibly convenient voucher system of slot pay. Two minutes to dinner and you don't want to cash out because you'll have to wait another twenty for a nickel hand-pay? No problem. Just take the printed receipt to the nearest cashier. No dirty coins, no awkward buckets, nothing spilled on the floor, no empty hoppers, and no endless waits for hand pays. It's a fantastic system that will only get better-soon you'll be able to take your voucher and insert it into another machine, where your credits will automatically appear. Now that's innovation.

Back on the Strip, high-end hipster hotel Mandalay Bay unveiled one of the city's newest non-gaming attractions, the Shark Reef. Walking through an elaborately designed "undersea experience," visitors get an opportunity to see one of North's America's largest displays of killer sharks and other sea predators.

But the biggest news of the year for the gaming industry involved sharks of a different type, when MGM Grand spent $6.7 billion to purchase Mirage Resorts, the company best known for Steve Wynn and his revolutionary gaming resorts.

After saying goodbye to Mirage Resorts, Steve Wynn wasted no time purchasing the 50 year-old Desert Inn for a measly $270 million

Wynn walked away from the Golden Nugget, The Mirage, Treasure Island and Bellagio-casinos that forever changed the Vegas landscape (yes, and Beau Rivage in Mississippi, and the construction project in Atlantic City). Yet Wynn wasted little time getting back in the game by snagging the Desert Inn for $270 million as a "birthday gift" for his wife, Elaine. When the 50-year-old property closed its doors late this summer, some players frowned at the news that the buildings would be razed and the golf course closed-but the majority are eager to see what the "man who changed Las Vegas" will build next.

Wynn has hinted that he might create a "bigger and better resort," although details are obviously sketchy. An art gallery could be in the works, along with two 60-story hotel towers, condos, theaters, a theme park, a massive lake to replace the golf course, and, undoubtedly, one heck of a casino. Stay tuned to see how this project evolves.

Caesars also got new owners this year when Park Place Entertainment purchased the Roman-themed resorts for $3 billion. Several months after the acquisition, the company announced a $60 million renovation of Caesars Palace, aimed at bringing its appearance more in line with current Strip properties. The project also includes another expansion to the Forum Shops and the addition of a dozen villa suites for the highest of rollers. As part of its interior renovations, long-time gourmet rooms Palace Court and the Bacchanal were closed, along with the venerable old Circus Maximus Theater. The family-themed Magical Empire may shut down early next year.

Yet even as Park Place was busy building its gaming empire, the company managed to sell the Las Vegas Hilton for $365 million to Los Angeles real estate developer Ed Roski. His plans for the resort center around transforming it into a midmarket slot house with upscale restaurants and a top-floor nightclub. Roski also owns the Silverton, a locals casino located on I-15, where he launched a major expansion earlier this year.

2000 saw (finally) the implosion of the Strip eyesore the El Rancho

Station Casinos continued to build on their dominance of the Vegas locals market with acquisitions of the Santa Fe in northwest Las Vegas, and the Fiesta (across the street from its highly successful Texas Station) only weeks later. Station spent $205 million for the former and $185 million for the latter. In mid-October, Station announced that it would sell its two Missouri casinos to Ameristar Casinos for $475 million, and in exchange, purchase Ameristar's Reserve Casino in the southeast corner of Las Vegas for $70 million. The deal means Station will own a whopping seven hotel-casinos in the lucrative Vegas locals market.

What would a year in Las Vegas be without an implosion? The shell of the long-shuttered, hulking El Rancho on the northern stretch of the Strip was finally imploded in the fall, presumably to make way for yet another casino project.

And in the saddest news of the year, Park Place Entertainment President & CEO Arthur Goldberg, the man responsible for turning Bally's into the largest gaming company worldwide, died on October 19th. Goldberg, 58, was widely considered to be one of the most savvy executives in the industry, launching a spree of strategic acquisitions that included Hilton's gaming properties, as well as Grand Casinos and Caesars.

East Meets West

Things were pretty exciting in Atlantic City, too. Years of broken promises for development in the Marina District finally ended in September when Boyd Gaming and the newly combined MGM Mirage broke ground for the $1 billion Borgata project. In what was easily the most lavish casino groundbreaking in the city's history, nearly 400 guests celebrated the project at a $500,000, invitation-only gala in a circus-size tent on top of the actual construction site.

Even Donald Trump was enthusiastic about the groundbreaking, which came as a surprise to many. Trump, who had shelled out hundreds of thousands of dollars to fight the Atlantic City-Brigantine Connector (the "tunnel project"), changed his tune and is now singing the praises of the roadway. What changed the mind of the man who once called the tunnel a "private driveway" to Steve Wynn's new casino? The art of the deal: He arranged to have an off-ramp built directly to Trump Marina in exchange for dropping all legal challenges to the project.

The much anticipated $1 billion Borgata project broke ground in Atlantic City

For Harrah's, the 2003 Borgata opening gives it plenty of time to complete its $115 million expansion. Harrah's new hotel tower, featuring 460 rooms and several shops, is expected to be complete in 2002. This year, Harrah's added nearly 300 slot machines to its inventory and renovated several restaurants, a trend that will continue with the relocation of the popular Steakhouse next year.

One machine you won't find among Harrah's slots is Megabucks. Dreams of winning a fortune ended for Atlantic City players when all 12 casinos and slot manufacturer International Game Technology pulled the plug on the progressive after player interest dwindled to an all-time low. Some players were upset by the news, but most moved on to newer, multisite slots like Wheel of Fortune and Elvis. And even as players said goodbye to Megabucks, they welcomed the addition of nickel games in casinos throughout the city, learning rather quickly that the popular multiline nickel games can cost just as much as quarter (and even dollar) machines when played at max coin.

One casino that jumped on the nickel wagon early on was the Sands, where billionaire Carl Icahn beat out Park Place Entertainment for control of the bankrupt property. The savvy Icahn is now gearing up for a much-needed $65 million upgrade of the resort. The Sands is the first East Coast casino for Ichan, who already owns the Stratosphere and the two Arizona Charlie's casinos in Las Vegas-casinos known for their low table limits and loose slots, a formula that would transfer well to the beleagured Sands.

Prior to Icahn's purchase of the Sands, the property made history when King Maswati of Swaziland particpated in a special ribbon cutting ceremony for the resort's new Pacific Avenue porte cochere. The streetside celebration included an appearance by the Beijing Opera, performing in the United States for the first time in 25 years.

The opera is just one example of how Atlantic City casinos have stepped up their entertainment throughout the year. Historical exhibits like the Tropicana's Titanic artifacts and The Dresses of Princess Diana, as well as Resorts' Faberge Collection, were popular diversions this year. Many casinos, particularly the Tropicana, took entertainment to a new level by ditching low-budget revues and bringing in Broadway-style productions as Lord of the Dance, Grease and Rent. The Trump properties were also at the cutting edge of entertainment, offering everything from opera great Luciano Pavarotti and alternative rock group Stone Temple Pilots to teen sensation Britney Spears. Trump also turned heads when he opened the sexy Cashbah nightclub at the Taj.

Coyote Kate’s slot parlor was unveiled as part of the Wild Wild West expansion

Players are still buzzing about the new slot parlor at the Wild Wild West Casino, Bally's western-themed annex. For the past two years, the Boardwalk space between Wild Wild West and Caesars has been home to little more than an empty lot and a wooden fence. Before that, seedy souvenir and T-shirt shops separated Caesar from the cowboys.

Now that portion of the Boardwalk features a string of Park Place casino properties, with a continuous facade that makes sense. In early September, the company opened the Wild Wild West expansion, with new Boardwalk frontage, a bakery, retail outlets and "Coyote Kate's," a slot parlor with more than 340 new machines. Through a special indoor walkway, visitors can now enter Caesars at Missouri Avenue and walk all the way to the eastern end of Bally's Park Place at Brighton Park without setting foot outside.

Finally, Sun International Hotels Ltd. sold Resorts Atlantic City to privately-held Colony Capital LLC, a Los Angeles-based real estate investor, for $140 million. The price, according to Sun President Butch Kerzner, included some of Resorts' undeveloped land and redevelopment rights of the old Steeplechase Pier. The reason for the sale, said Kerzner, is that the aging casino simply could not become the megaresort Sun had originally envisioned.

Projects in the Woods

Connecticut's two enormous casinos are also gearing up for some new development. While Foxwoods remains the larger casino, Mohegan Sun is quickly gaining speed as it works toward completing Project Sunburst, which will triple the property's size, adding more than four million square feet. The more than $1 billion expansion will include a 1,200-room luxury hotel tower, a massive arena, spa, fitness center and a planetarium. Because of its size and scope, the project is being hailed as the "largest private development to date on the East Coast."

When completed in April 2001, Mohegan Sun will be one of the largest casino-resorts in the world, complete with an additional 115,000 square feet of gaming space in the "Casino of the Sky," a cabaret theater, and plenty of stores to visit after you hit a jackpot.

In Connecticut, the Mohegan Sun announced the more than $1 billion Project Sunburst expansion

Already one of the country's largest casino resorts, Foxwoods is currently shaping itself up to attract players and celebrities from around the world by constructing a "super high roller area."

The new room will be small in comparison to the rest of the resort, but it only needs to be large enough to accommodate the kind of action you see in James Bond movies. According to Foxwoods executives, the new room will feature a highly personalized gaming atmosphere with only 10 tables for blackjack, baccarat and single-zero roulette. An additional salon providing the utmost in privacy will offer two more tables, bringing the total number of games in this private casino to 12.

Other amenities will include a cocktail lounge and a gourmet restaurant. Expect the restaurant to serve an exquisite blend of fusion-style cuisine-if you can get in. Casino executives have passed on identifying exactly how much play will be needed to stroll into this exclusive room, but industry insiders suggest that those without seven-digit credit lines need not apply.

Motor City Millions

By the time this issue of Casino Player hits the newsstands, Detroit's Greektown Casino will have joined the MGM Grand and MotorCity casinos operating in the city's downtown district.

The three Detroit casinos are billed as "interim facilities," operating in pre-existing buildings while the permanent casinos are under construction (ironically, one interim casino is housed in a former IRS building).

Detroit's casinos resemble the traditional gaming halls of Vegas and Atlantic City, but are much tighter on space and are missing many of the amenities found in traditional markets. Because they operate without hotels, they cater almost exclsuively to local, drive-in crowds.

The only permanent casino operating in the region is Casino Windsor, located on the Canadian side of the Detroit River. In response to the Motown competition, Casino Windsor debuted a new high-roller slot area this year, complementing the high-limit table area that opened in 1999, and its top-notch hotel and restaurants.

The 'Sleeping Giant'

Often referred to as the "sleeping giant," the Louisiana casinos of Shreveport-Bossier City are in a transition phase that will ultimately change the playing field by the beginning of next year, if not sooner.

Located on the Bossier City side of the Red River, the Horseshoe has been the region's top property since it opened a high-end hotel facility several years ago. But Horseshoe will face some serious competition from a revamped Harrah's and brand-new Hollywood Casino.

Harrah's was actually the first riverboat casino in Shreveport, but it wasn't until the end of this year that it opened its $147 million hotel tower. In addition to more than 500 rooms, Harrah's expansion includes a bakery, butcher shop, convention space and dry-cleaning service, all positioned to generate local traffic.

Across from Harrah's is the new Hollywood casino, possibly the most elaborate Hollywood casino to date (the others are in Tunica, MS and Aurora, IL). In addition to an all-suite hotel, Hollywood Shreveport will offer a variety of nongaming attractions including a spa, shopping promenade and two entertainment venues. Look for a Hollywood-branded golf course to open later next year.

Southern Exposure

Like the rest of the gaming industry, Mississippi was significantly impacted by the year's string of corporate mergers. Isle of Capri casinos finalized a $420 million acquisition of Lady Luck Gaming, which affected casinos in Mississippi as well as Iowa and Nevada. The company now operates gaming riverboats in Lula and Natchez under the Isle of Capri name.

Pinnacle Entertainment scooped up Casino Magic Biloxi (the company also owns Casino Magic in Bossier City, LA and Boomtown in New Orleans), and announced plans to expand and re-theme the Gulf Coast resort. The project will raise the room count to approximately 800 and double the casino space.

Rumors continue to circulate that the Imperial Palace Biloxi is on the block. The struggling casino has never drawn a significant number of players, despite bargain-basement room rates and an attractive gourmet room overlooking the Gulf Coast at the top of the building. Moreover, the property's Asian theme didn't appeal to locals, because of regional prejudices involving Vietnamese shrimpers. Only time will determine the property's fate.

Unfortunately, the fate of Beau Rivage's 40-foot magnolia trees was sealed when specialists made last-ditch efforts to nurse the sickly trees back to life, but failed. Players said goodbye to the sweet magnolias as workers cleared away the dead and dying trees that once greeted visitors in the atrium lobby. The magnolias have since been replaced by ficus trees, but more changes are in the works. Maggie's Bar will be removed to make way for an extended buffet area, along with other subtle changes designed to appeal to local gamblers.

Biloxi’s Palace Casino is betting its 12-story hotel will bring in the tourists

Meanwhile, Grand Casino Gulfport made headlines with the opening of its stunning new Oasis Hotel and Spa, one of the finest hotel facilities on the Coast. Located just across the street from the casino, the sprawling, plantation-style hotel is modeled after Tunica's successful Veranda and Terrace hotels, with a climate-controlled bridge across Beach Blvd. connecting the hotel to the casino. This much needed addition to the Grand Gulfport resort truly places it in league with its sister property in Biloxi-in fact, many would argue that the Gulfport Grand is now superior to the Biloxi Grand.

Finally, the struggling Palace Casino in Biloxi returned to the spotlight when it celebrated Memorial Day weekend by opening its long anticipated hotel tower. Long considered a locals-only casino, the overlooked property on Biloxi's Back Bay had been ignored by tourists, but management is hoping its 12-story hotel and upgraded amenities will change their opinion.

Crystal Ball Gazing

This year's series of mergers and acquisitions have led to heated competition in the gaming industry, which naturally translates into benefits for casino players. For example, within the next year, other casino companies will try to duplicate what Harrah's has created with its Total Rewards system. Soon you'll be able to visit one of the casinos owned by the "Big Four" casino companies-Harrah's, MGM Mirage, Park Place Entertainment and Mandalay Resort Group-and earn slot club points credited to a central account.

Even the "small" casino companies won't be left behind in this competition for customers. They'll be forced to offer better odds, equaling if not surpassing the benefits offered by the Big Four.

But it's up to the customers to determine which system will work best for them. Gamblers should honestly evaluate their level of play so they can match it with the appropriate casino. For example, a $10 player shouldn't take aim at becoming a special customer at Bellagio. To take advantage of the competition, players need to "fit in" to their casino's marketing plans.

Pop culture invades gaming with hip nightclubs such as Mandalay Bay’s Rumjungle

Casinos have already begun to target younger players, and that trend will continue next year. Headliners who appeal to younger audiences have already begun to dominate the marquees. And "hip" nightclubs like Rumjungle at Mandalay Bay, Studio 54 at MGM Grand, Baby's at the Hard Rock in Las Vegas and the Casbah at Trump Taj Mahal in Atlantic City will continue to draw the Gen X crowd.

The slot machines that will welcome players in 2001 represent the next stage of growth in the slot revolution that began several years ago. More second screen bonuses will be available, with improved graphics and more entertainment bang for the buck. More recognizable themes will be part of the modern slot floor since the success of Wheel of Fortune, Jeopardy and Monopoly have proven that players respond well to themes reflecting pop culture.

In Las Vegas, 2001 will be the first year in quite some time without the introduction of a major new casino on the Strip. This will give the casinos the chance to establish a loyal customer base and prepare for the next wave of Strip development, which will appropriately be kicked off by Steve Wynn's new property on the Desert Inn site sometime in 2003.

Atlantic City gamblers will see the opening of the Atlantic City-Brigantine Connection that will link the Atlantic City Expressway to the Marina District. For the time being, it will be much easier to access Harrah's and Trump Marina, but expect all that to change when Boyd Gaming's Borgata opens in mid-2003.

Riverboat states should continue to see silly cruise requirements lifted, making it more comfortable and convenient for casino customers to gamble. Most likely, the riverboats will start adding the kind of amenities that gamblers have come to expect and enjoy in the major gaming jurisdictions.

And in gaming's newest market, California, Native American tribes will begin to convert their small casinos into full-blown Las Vegas-style gaming complexes, now that the legal hurdles have been cleared. This will increase competition in Las Vegas, and ultimately make 2001 a great year for gamblers all over the country. Stay tuned. ´

Casino Player Senior Editor Roger Gros contributed to this story.

 


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