| 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
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The
Strips newest megaresort is actually the
rebirth of a Las Vegas Legend: The Aladdin
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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.
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With
the passing of Prop 1A in California, the coin-free
Borona Casino could become a gaming hot spot
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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.
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The
latest of four Coast Resorts, Suncoast opened
in northwest Las Vegas
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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.
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After
saying goodbye to Mirage Resorts, Steve Wynn wasted
no time purchasing the 50 year-old Desert Inn
for a measly $270 million
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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.
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2000
saw (finally) the implosion of the Strip eyesore
the El Rancho
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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.
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The
much anticipated $1 billion Borgata project broke
ground in Atlantic City
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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.
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Coyote
Kates slot parlor was unveiled as part of
the Wild Wild West expansion
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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.
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In
Connecticut, the Mohegan Sun announced the more
than $1 billion Project Sunburst expansion
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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.
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Biloxis
Palace Casino is betting its 12-story hotel will
bring in the tourists
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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.
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Pop
culture invades gaming with hip nightclubs such
as Mandalay Bays Rumjungle
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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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