Is Shel Adelson the Grinch?
February 4th, 2011 at 5:34:58 PM
permalink
This quote leads me to think so.
Chairman and CEO Sheldon Adelson, in a conference call with analysts Thursday, discussed the company's new strategy in Las Vegas that has resulted in more focus on conventioneers and that has cut promotional allowances 39 percent from the 2009 quarter to $25.4 million in the 2010 quarter.
"We've essentially cut all of our comps except our most highly-rated players," he said. "No more comped rooms. No food and beverage. No showroom credits. We're selling rooms. We see it's resulting in a substantial increase in cash income."
Full article here.
Chairman and CEO Sheldon Adelson, in a conference call with analysts Thursday, discussed the company's new strategy in Las Vegas that has resulted in more focus on conventioneers and that has cut promotional allowances 39 percent from the 2009 quarter to $25.4 million in the 2010 quarter.
"We've essentially cut all of our comps except our most highly-rated players," he said. "No more comped rooms. No food and beverage. No showroom credits. We're selling rooms. We see it's resulting in a substantial increase in cash income."
Full article here.
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
February 4th, 2011 at 6:08:08 PM
permalink
I think that while this past quarter has led to an uptick of cash income - how long will it last once many gamblers hear of this quote? Especially since LV has so many other choices to offer. There's even a discussion on tripadvisor that even comp offers that were booked have now been revoked from people who are not "highly-rated"
-B
-B
February 4th, 2011 at 6:19:51 PM
permalink
Quote: teddysThis quote leads me to think so.
Chairman and CEO Sheldon Adelson, in a conference call with analysts Thursday, discussed the company's new strategy in Las Vegas that has resulted in more focus on conventioneers and that has cut promotional allowances 39 percent from the 2009 quarter to $25.4 million in the 2010 quarter.
"We've essentially cut all of our comps except our most highly-rated players," he said. "No more comped rooms. No food and beverage. No showroom credits. We're selling rooms. We see it's resulting in a substantial increase in cash income."
Full article here.
Hee hee. This quote is a good reason why I'm such a stickler for proper English. Can you see where the reporter put in an apostrophe that didn't belong, thereby totally changing the meaning of what Adelson said?
The fact that a believer is happier than a skeptic is no more to the point than the fact that a drunken man is happier than a sober one. The happiness of credulity is a cheap and dangerous quality.---George Bernard Shaw
February 4th, 2011 at 9:52:28 PM
permalink
Promotional Allowances cut to $25.4m from $41.6m in 2009.
It seems like a savvy move. Vegas is only 7.60% of the casino earnings of the corporation for the 4th quarter, and it will only shrink. He can save his comps for Singapore.
Casino Revenue
$ 457.1m Marina Bay Sands
$ 121.8m Las Vegas Sands (7.60%)
$ 79.1m Bethlehen PA (4.93%)
$ 1,603.2m Total Corporate Earnings
Sheldon's Rank in the Forbe's World's Richest People in the last few years will be updated in about 4-5 weeks.
I wouldn't be surpised if he is back in the top 20.
March, #Rank
2006, #14
2007, #06
2008, #12
2009,#178
2010, #73
Sheldon was ranked #3 in Forbes 400 in 2006 and 2007 (just Americans).
It seems like a savvy move. Vegas is only 7.60% of the casino earnings of the corporation for the 4th quarter, and it will only shrink. He can save his comps for Singapore.
Casino Revenue
$ 457.1m Marina Bay Sands
$ 121.8m Las Vegas Sands (7.60%)
$ 79.1m Bethlehen PA (4.93%)
$ 1,603.2m Total Corporate Earnings
Sheldon's Rank in the Forbe's World's Richest People in the last few years will be updated in about 4-5 weeks.
I wouldn't be surpised if he is back in the top 20.
March, #Rank
2006, #14
2007, #06
2008, #12
2009,#178
2010, #73
Sheldon was ranked #3 in Forbes 400 in 2006 and 2007 (just Americans).
February 5th, 2011 at 12:17:30 AM
permalink
there is a don't go to the venetian/palazzo campaign starting on some web sites due to this dickheads comments.
February 5th, 2011 at 3:52:58 AM
permalink
When I did my Venetian review last month I thought the comps given to me were up to Vegas averages. Maybe my prior history had something to do with it.
"For with much wisdom comes much sorrow." -- Ecclesiastes 1:18 (NIV)
February 5th, 2011 at 5:03:34 AM
permalink
I was mailed 2-4 night stays comped upto 4 times a month for several years now, for surprisingly little play. I thought it was excessive and obviously Sheldon did too!
Fortunately I get offers from the other big boys, not as lucrative, but they will get my business next time. No loss.
Fortunately I get offers from the other big boys, not as lucrative, but they will get my business next time. No loss.
When a rock is thrown into a pack of dogs, the one that yells the loudest is the one who got hit.
February 10th, 2011 at 5:57:57 AM
permalink
Seems that comps for mid level players are now a thing of the past at the V / P.
Several users, on "other" Vegas forums, are reporting that comps booked are being rescinded, via telephone calls, and with as little as 24 hours notice prior to arrival! (I do not want to link to messages on other forums, but details available on request)
One user recounts how she spoke with her host on Feb 4, 2010, and he host confirmed her "reservation and that it is comped".
She than received a telephone call late afternoon, on February 9, 2010 to advise she would not be comped, but that they would offer a "casino rate" on her room. She is scheduled to arrive in Vegas on February 10, 2010 late afternoon-early evening.
I have no issues with them making a business decision and re-evaluating their comp policies, etc.
I find many faults in cutting them off immediately, and not "honoring" comps on the books, telephoning a day or few days before that customer is due to arrive, and telling them their comp will no longer be free, but they are welcome to stay at casino rates.
Fortunately for the ones I know of, they were able to arrange comped rooms elsewhere and "salvage" their trips, and in some cases, non-refundable air fares.
Comments, thoughts?
Several users, on "other" Vegas forums, are reporting that comps booked are being rescinded, via telephone calls, and with as little as 24 hours notice prior to arrival! (I do not want to link to messages on other forums, but details available on request)
One user recounts how she spoke with her host on Feb 4, 2010, and he host confirmed her "reservation and that it is comped".
She than received a telephone call late afternoon, on February 9, 2010 to advise she would not be comped, but that they would offer a "casino rate" on her room. She is scheduled to arrive in Vegas on February 10, 2010 late afternoon-early evening.
I have no issues with them making a business decision and re-evaluating their comp policies, etc.
I find many faults in cutting them off immediately, and not "honoring" comps on the books, telephoning a day or few days before that customer is due to arrive, and telling them their comp will no longer be free, but they are welcome to stay at casino rates.
Fortunately for the ones I know of, they were able to arrange comped rooms elsewhere and "salvage" their trips, and in some cases, non-refundable air fares.
Comments, thoughts?
February 10th, 2011 at 6:56:29 AM
permalink
Um, no.Quote: mkl654321Hee hee. This quote is a good reason why I'm such a stickler for proper English. Can you see where the reporter put in an apostrophe that didn't belong, thereby totally changing the meaning of what Adelson said?Quote: teddysThis quote leads me to think so.
Chairman and CEO Sheldon Adelson, in a conference call with analysts Thursday, discussed the company's new strategy in Las Vegas that has resulted in more focus on conventioneers and that has cut promotional allowances 39 percent from the 2009 quarter to $25.4 million in the 2010 quarter.
"We've essentially cut all of our comps except our most highly-rated players," he said. "No more comped rooms. No food and beverage. No showroom credits. We're selling rooms. We see it's resulting in a substantial increase in cash income."
Full article here.
There are several places that could use a comma, but I don't see an errant appostrophe.
Which apostrophe do you think doesn't belong?
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
February 10th, 2011 at 8:36:19 AM
permalink
Quote: DJTeddyBear... Which apostrophe do you think doesn't belong?
I know that mkl will answer for himself, but when I read his comment, I suspected he was think thinking about "it's" and believed that Mr. Adelson had intended "its." In one case (with the apostrophe), the statement seems to imply that the policy is already resulting in an increased income. Without the apostrophe, "We see its resulting in..." would seem to suggest they anticipate the policy having a characteristic that will lead to future increases in income.
However, I do not see this as "totally changing the meaning of what Adelson said", as stated by mkl. More like a very slight tilt of implication. I don't see how the reader would have any idea whether the quote was accurate or in error just from reading it. You would need to know whether Mr. Adelson believed there was already improvement to income or not.
February 10th, 2011 at 9:12:52 AM
permalink
If you talk to people who have dealt with Sheldon Adelson he is described as singularly focused on making money. Although he was #3 in USA for two years running, he still hasn't climbed his way up that high since plummeting after the recession. Steve Wynn is often described as very personable, concerned about his employees, and sees himself as almost an artist/entrepreuner.
The lower half of the table are the Nevada billionaires, where only Alfred Mann is not involved in casinos.
The lower half of the table are the Nevada billionaires, where only Alfred Mann is not involved in casinos.
| Rank | Name | Net Worth | Age |
|---|---|---|---|
| 1 | Bill Gates | $54.0 | 55 |
| 2 | Warren Buffett | $45.0 | 80 |
| 3 | Larry Ellison | $27.0 | 66 |
| 4 | Christy Walton | $24.0 | 56 |
| 5 | Charles Koch | $21.5 | 75 |
| 5 | David Koch | $21.5 | 70 |
| 7 | Jim Walton | $20.1 | 63 |
| 8 | Alice Walton | $20.0 | 61 |
| 9 | S. Robson Walton | $19.7 | 67 |
| 10 | Michael Bloomberg | $18.0 | 68 |
| 11 | Larry Page | $15.0 | 37 |
| 11 | Sergey Brin | $15.0 | 37 |
| 13 | Sheldon Adelson | $14.7 | 77 |
| 136 | Nancy Walton Laurie | $2.6 | 59 |
| 182 | Phillip Ruffin | $2.0 | 75 |
| 205 | Steve Wynn | $1.9 | 69 |
| 332 | Alfred Mann | $1.2 | 85 |
| 365 | Frank Fertitta | $1.1 | 48 |
| 382 | Elaine Wynn | $1.1 | 67 |
| 385 | Lorenzo Fertitta | $1.0 | 42 |
February 10th, 2011 at 9:35:06 AM
permalink
I listened to the conference call and when I heard SA say that I thought "Crap!" :)
February 17th, 2011 at 2:47:29 PM
permalink
Quote: teddys"We've essentially cut all of our comps except our most highly-rated players," Sheldon Adelson said. "No more comped rooms."
What is his definition of "most highly-rated"? Do you need a $5,000 bankroll to get their attention? Or is it more like $25,000?
Adelson can't be blamed for ignoring the genuine low rollers who belong at Excalibur or Imperial Palace. But perhaps it is in Adelson's best interest to still give midweek free room offers to the guy with an $800 bankroll playing $25 hands of blackjack.
The new business model is to fill his 7,000 hotel rooms with members of InterContinental's Priority Club (Holiday Inn's rewards program). When you've got thousands of rooms sitting empty, it makes sense to sell them in bulk, even if it means having a few less gamblers at the tables. But I'm wondering how many Holiday Inn regulars he can count on to drop $80 on a nice breakfast for 2 from Palazzo room service...
February 17th, 2011 at 3:57:10 PM
permalink
Quote: reno
What is his definition of "most highly-rated"? Do you need a $5,000 bankroll to get their attention? Or is it more like $25,000?
Adelson can't be blamed for ignoring the genuine low rollers who belong at Excalibur or Imperial Palace. But perhaps it is in Adelson's best interest to still give midweek free room offers to the guy with an $800 bankroll playing $25 hands of blackjack.
The new business model is to fill his 7,000 hotel rooms with members of InterContinental's Priority Club (Holiday Inn's rewards program). When you've got thousands of rooms sitting empty, it makes sense to sell them in bulk, even if it means having a few less gamblers at the tables. But I'm wondering how many Holiday Inn regulars he can count on to drop $80 on a nice breakfast for 2 from Palazzo room service...
That hotel group has three luxury brands: (1) InterContinental (2) Crowne Plaza and (3) Hotel Indigo and Priority Club has 52 million global members. That's a big database, so I'm sure he can find a few million people out of that group that will go for the $80 breakfasts.
From Sands year end report, they increased food sales by 25% and retail by 67%.
With Sands Corp. pulling in almost as much gaming revenue as the strip, maybe they have just found that it is more profitable to entertain their high rollers in Singapore.
| Gaming $$ | CY2010 | CY2009 | change |
|---|---|---|---|
| Penn National | $2,225,000 approx | $2,158,028 | +3.1% |
| MGM Resorts | $2,442,927 | $2,618,060 | -6.7% |
| Wynn Resorts | $3,245,104 | $2,206,829 | 47.0% |
| Sands Corp | $5,533,088 | $3,524,798 | 57.0% |
| Vegas Strip | $5,776,570 | $5,550,192 | +4.1% |
| Ceasars Corp | $6,870,000 approx | $7,124,300 | -3.6% |
Penn National has the following statement on their website: With over 16,000 employees, and revenues exceeding $2 billion, Penn National Gaming is the 3rd largest US gaming company. I presume that they consider themselves larger than Wynn and Sands in USA operations.
February 17th, 2011 at 5:17:24 PM
permalink
Quote: pacomartinIf you talk to people who have dealt with Sheldon Adelson he is described as singularly focused on making money. Although he was #3 in USA for two years running, he still hasn't climbed his way up that high since plummeting after the recession. Steve Wynn is often described as very personable, concerned about his employees, and sees himself as almost an artist/entrepreuner.
The lower half of the table are the Nevada billionaires, where only Alfred Mann is not involved in casinos.
Rank Name Net Worth Age 1 Bill Gates $54.0 55 2 Warren Buffett $45.0 80 3 Larry Ellison $27.0 66 4 Christy Walton $24.0 56 5 Charles Koch $21.5 75 5 David Koch $21.5 70 7 Jim Walton $20.1 63 8 Alice Walton $20.0 61 9 S. Robson Walton $19.7 67 10 Michael Bloomberg $18.0 68 11 Larry Page $15.0 37 11 Sergey Brin $15.0 37 13 Sheldon Adelson $14.7 77 136 Nancy Walton Laurie $2.6 59 182 Phillip Ruffin $2.0 75 205 Steve Wynn $1.9 69 332 Alfred Mann $1.2 85 365 Frank Fertitta $1.1 48 382 Elaine Wynn $1.1 67 385 Lorenzo Fertitta $1.0 42
I don't think Nancy Walton Laurie is into casinos either, is she?
Simplicity is the ultimate sophistication - Leonardo da Vinci
February 17th, 2011 at 6:07:15 PM
permalink
Quote: Ayecarumba
I don't think Nancy Walton Laurie is into casinos either, is she?
Sorry, she is the daughter of Sam Walton's younger brother who left the business early (which is why she is not up with the other Waltons).
At one point the Walton family was worth more than all the gold in Fort Knox, but with the rise in the price of gold, I am not sure that is true anymore.
May 6th, 2011 at 11:48:49 PM
permalink
I have to admit that I didn't see that coming. Obviously the reduction in comps would affect the Vegas operations of Sands Corporation, but I would never have predicted a 46% drop in Vegas casino revenue. Vegas casino revenue has actually dropped below Pennsylvania Sands, and Bethlehem doesn't even have it's 300 room hotel open.
Of course, Singapore is making money hand over foot.
First quarter casino operations (1st quarter 2011 vs 2010 in $ millions)
The Venetian Macao $553.4 $474.8
Sands Macao Operations $315.7 $277.9
Four Seasons Hotel Macao $160.8 $90.5
Marina Bay Sands Operations $464.4 N/A
Las Vegas Operations $83.1 $155.3
Sands Bethlehem Operations $87.1 $63.3
Of course, Singapore is making money hand over foot.
First quarter casino operations (1st quarter 2011 vs 2010 in $ millions)
The Venetian Macao $553.4 $474.8
Sands Macao Operations $315.7 $277.9
Four Seasons Hotel Macao $160.8 $90.5
Marina Bay Sands Operations $464.4 N/A
Las Vegas Operations $83.1 $155.3
Sands Bethlehem Operations $87.1 $63.3
May 7th, 2011 at 12:15:54 AM
permalink
Their philosophy about comping only the biggest players could be a blessing in disguise. I'll be using the V/P for quick sessions and won't even bother getting rated. As long as drink service and decent blackjack rules remain, ill use it as a place to go when I need a break from mirage.
May 7th, 2011 at 4:19:03 AM
permalink
Quote: darrenfromindyTheir philosophy about comping only the biggest players could be a blessing in disguise.
That gaming revenue is extremely low for that companies Vegas location. Gaming revenue forfirst quarter of 2004, when they only had the Venetian and not the Palazzo or any Asian location was $94.7 million.
Marriot keeps talking about having a casino next to the convention center. Adelson should just sell them the Venetian Palazzo and concentrate on his overseas operations and eventually becoming a bigger corporation than Marriot.
May 7th, 2011 at 5:10:36 AM
permalink
Very interesting numbers. Wonder if SA will rethink his comps position?
When a rock is thrown into a pack of dogs, the one that yells the loudest is the one who got hit.
May 7th, 2011 at 8:23:36 AM
permalink
Quote: pacomartinI have to admit that I didn't see that coming. Obviously the reduction in comps would affect the Vegas operations of Sands Corporation, but I would never have predicted a 46% drop in Vegas casino revenue. Vegas casino revenue has actually dropped below Pennsylvania Sands, and Bethlehem doesn't even have it's 300 room hotel open.
Of course, Singapore is making money hand over foot.
First quarter casino operations (1st quarter 2011 vs 2010 in $ millions)
The Venetian Macao $553.4 $474.8
Sands Macao Operations $315.7 $277.9
Four Seasons Hotel Macao $160.8 $90.5
Marina Bay Sands Operations $464.4 N/A
Las Vegas Operations $83.1 $155.3
Sands Bethlehem Operations $87.1 $63.3
Looking at the Sands' Las Vegas numbers doesn't tell the whole story:
The Table Games drop is down 13 percent from $547 to 477 million. The Slot handle is down a whopping 36 percent from 637.8 million to 407 million. Wow - that's a story.
By cutting off the promotional breaks from $52 million to $18 million however, the Sands Las Vegas total net revenues is only off by 25.4 million or 7.7 percent.
So I wonder if reducing the comps had a big effect on the slot players or the table players. As well, the table games hold drop is quite a interesting predicament. I wonder what caused that? A few big whales who had a great night, perhaps?
Still, the Sands is charging an average of $207 in 2010 to $212 / room night in Vegas. Wynn Resorts' ADR went from $203 to $240 in 1Q 2010 to 1Q 2011.
-----
You want the truth! You can't handle the truth!
May 7th, 2011 at 10:06:35 AM
permalink
Quote: boymimboA few big whales who had a great night, perhaps? Still, the Sands is charging an average of $207 in 2010 to $212 / room night in Vegas. Wynn Resorts' ADR went from $203 to $240 in 1Q 2010 to 1Q 2011.
There is no way to know for sure without further input, but my instinct is not to blame it on a few whales. I tend to think it is non-Asian players who still change a lot of money, but they wander away from the tables an hour or two later, while the Chinese hard core will stand at a table for 8 or 10 hours.
Will Sheldon Adelson change his mind? Hard to say, but even if the Vegas operations did just as good as they did last year in gaming, it would still be a tiny percentage of the take in Singapore. His decision not to play the comp game in Vegas seems well founded. It does seem that the key to restoring profitability in Vegas is to get the convention business, and make the money in non-gaming ventures. While the Cosmopolitan is getting a lot of attention for doing the same thing, the Venetian is still much closer to the Vegas convention center, and they still have a large convention center as part of their complex.
In the past, we know that Sheldon invested very heavily in large aircraft to bring gamblers to Vegas from China. I assume that he has traded in these leases for ones with multiple 9 passenger business jets to bring people to Singapore. For the price of a single wide body aircraft that can cross the Pacific, you can get dozens of the finest business aircraft that are capable of only 3000 mile range.
May 7th, 2011 at 10:17:49 AM
permalink
By coincidence I *just* returned from a week in Vegas, my annual anniversary trek to Sin City with my wife. For the first time since we started going to Vegas, we did NOT stay at V/P (opting to try Wynn) specifically because of V/P's new comps policy. But since I had some slot points from previous visits (my resort/table points disappeared in the blink of an eye of course) we went over there a couple of times to use them up (I cashed them in as more slot play). My other observations aside to keep on-topic here, it looks like they significantly increased machine density (looks like they reconfigured the secondary table areas to add even more machines) and (IMO based on my own play) made the machine payouts even tighter. It was mid-week so maybe I wasn't seeing the whole picture but the gaming crowd was down and the conference crowd was up, compared with previous visits. The slot players seemed to be a very transient (not as in "bum" more like "passing through"), casual bunch.
So sad to see....
So sad to see....
May 7th, 2011 at 10:22:15 AM
permalink
Yep, looks like gaming at Venelazzo is going down the tubes. Slot paybacks have always been the lowest or among the lowest in Las Vegas. Now, table games are getting worse. I may have to remove them from my favorite casinos list :(
How was your experience at the Wynn? Is Steve doing it better than Shel?
How was your experience at the Wynn? Is Steve doing it better than Shel?
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
May 7th, 2011 at 11:36:19 AM
permalink
Quote: teddysHow was your experience at the Wynn? Is Steve doing it better than Shel?
Quote: Wynn's 1st quarter earning's release (19 April 2011)
Net casino revenues in the first quarter of 2011 were $194.2 million, up 39.2% from the first quarter of 2010. Table games drop was $634.0 million, compared to drop of $556.9 million in the 2010 quarter and table games win percentage of 30.4% was above the property's expected range of 21% to 24% and the 23.2% reported in the 2010 quarter. Slot machine handle of $718.7 million was 6.6% above the comparable period of 2010, and net slot win was up 18.1%.
Sands Las Vegas (V/P)
Table Games Drop $476.6m; Table Games Win 13.3%
Slot Handle $407.3m; Slot Hold 8.5%
Which seems to confirm the earlier speculation that the machines are much tighter. If table game win percent is 30.4% at Wynn vs 13.3% at V/P my initial guess is that Wynn got all the whales for Chinese New Year that went to Vegas.
While usually you think of Wynn/Encore and V/P as close competition it looks as if V/P has simply dropped out of the game and instead of giving comps is concentrating almost completely on the corporate clientele.
What struck me as particularly unexpected was that the Bethlehem PA operations had greater revenue than the Las Vegas operations. PA charges a tax rate of over 50% while Las Vegas charges less than 7%, so my original thought was that they wouldn't try to entertain whales in PA, but just concentrate on the mass market. But with the new hotel opening in 3 weeks, they are going to have VIP gaming rooms.
The PA facility is 71 air miles from Manhattan, but it is also only about 45 air miles from money of Main Line Philadelphia so it should be an easy helicopter ride. The Main Line is one of those bastions of old money that goes back nearly a century. The region was made particularly famous by "Philadelphia Story" with Katherine Hepburn.
_06.jpg)
The Bethlehem casino is located in an old ore pit surrounded by century old industrial buildings, so it is hard to imagine making it into a place for the rich to spend their time, but the three Philadelphia casinos are two racetracks and what seems to be a neighborhood casino along the river (Sugar House). None of them have dedicated hotels, nor are there any plans to build one.
May 7th, 2011 at 2:44:50 PM
permalink
Quote: teddysHow was your experience at the Wynn? Is Steve doing it better than Shel?
I assume you're just asking just about our experience with comps per this thread. We had a couple "promo" comps: our stay included two free nights per a marketing email plus I added a few more nights at a $129/nt. We also got a couple promo buffet comps after signing up for Red Card and playing slots for a while. But our play didn't rate anything additional. On the other hand we were aware that the Wynn is a "high roller" joint so we weren't expecting any either: I have it on good authority that rooms come at about $200 for 4 hours/day at table games and/or 3K points/day on slots and we were probably doing about half that rate. That wasn't the primary reason we stayed at the Wynn anyway--we were more interested in a luxury experience while at the same time telling V/P "not this year, guys."
OT but overall we very much enjoyed the Wynn. Our only real gripe was the price of food there (don't get me wrong: it was fresh, well-prepared, and tasty. We just think it was over-priced by about 25% for what we got).
May 7th, 2011 at 7:40:32 PM
permalink
The Wynn is pricey. Though I found that although the sandwiches at the deli were overpriced, the quality and food was great -- you could easily split a sandwich between two people and have a decent lunch for a low price.
It's an interesting strategy by Venetian/Palazzo.... to admit that they can't compete with the normal fleas and to go after corporate clientele. It's not a bad strategy in a market with too much capacity.
It's an interesting strategy by Venetian/Palazzo.... to admit that they can't compete with the normal fleas and to go after corporate clientele. It's not a bad strategy in a market with too much capacity.
-----
You want the truth! You can't handle the truth!
May 8th, 2011 at 7:14:59 PM
permalink
Quote: boymimboIt's an interesting strategy by Venetian/Palazzo.... to admit that they can't compete with the normal fleas and to go after corporate clientele. It's not a bad strategy in a market with too much capacity.
As was pointed out earlier, despite this massive drop in gaming revenue, the operation cut it's operating expenses in not only comps, but also other operational expenses. There was an increase in food, beverage and entertainment sales, so that overall the operating income was reduced by only $10 million for the business quarter compared to last year. Casino revenue was only 26% of total revenue for the quarter.
With Singapore generating $6-$7 million a day in revenue, there is some value in the idea of just giving up on Vegas. Since Wynn had such excellent gambling revenue increase for the quarter, and the overall strip showed a solid baccarat revenue for Chinese New Year's it seems like Sands is more or less pulling out of the gambling business in Vegas. Maybe with their new alliance with IHG, they will boost their somewhat anemic 83.9%
The Sands Bethlehem PA facility has 77 table games, 23 poker tables, and 3,025 slot machines
The Venetian/Palazzo NV facility has 241 table games, 52 poker tables, and 3,050 slot machines.
Yet the Pennsylvania facility had higher gross gaming revenue then the Las Vegas facility. Of course, gaming taxes are considerably higher in PA.
But given that it is the largest hotel/convention center complex in the world, it is still surprising to see that only $1 in $7 of the overall corporate revenue coming from Las Vegas.
Maybe they will close one of the casinos and make the other one into more shopping.
May 8th, 2011 at 7:48:22 PM
permalink
Quote: pacomartin...Maybe they will close one of the casinos and make the other one into more shopping....
Maybe its coincidence but the Palazzo removed its large vertical signs from each side of the building. I asked about it while passing through and none of the employees I talked to knew why.
June 9th, 2011 at 5:53:19 AM
permalink
Sheldon is talking with between 5 and 7 Asian countries about trying to replicate the Singapore miracle in their country
June 9th, 2011 at 8:44:45 AM
permalink
I already don't go to V/P. It smells funny. Not in the HaHa way either. When Shelly let's his workers unionize, I might consider visiting again.
Someday, joor goin' to see the name of Googie Gomez in lights and joor goin' to say to joorself, "Was that her?" and then joor goin' to answer to joorself, "That was her!" But you know somethin' mister? I was always her yuss nobody knows it! - Googie Gomez
June 9th, 2011 at 1:44:43 PM
permalink
Do unionized workers smell different than non-unionized workers?
June 9th, 2011 at 2:19:03 PM
permalink
varies from dealer to dealerQuote: kpDo unionized workers smell different than non-unionized workers?
Someday, joor goin' to see the name of Googie Gomez in lights and joor goin' to say to joorself, "Was that her?" and then joor goin' to answer to joorself, "That was her!" But you know somethin' mister? I was always her yuss nobody knows it! - Googie Gomez
