Muskegon Casino Backers Applaud Wayland Casino Decision

The chief for a Indian tribe looking to put a casino in Muskegon County applauded U.S. Supreme Court action seeming to pave the way for another tribe's casino in Wayland.

Little River Band of Ottawa Indians Ogema Larry Romanelli -- a Fruitport Township resident -- heralded the Supreme Court's denial of an appeal of a case seeking to block the Wayland casino of the Gun Lake Band of Pottawatomi Indians.

"We are pleased that our sister tribe has taken a major step forward towards completion of their dreams for economic development," Romanelli said in a prepared statement. "We wish them well."

For the complete story, please see Dave Alexander Tribal leader eyeing Muskegon casino applauds ruling, The Muskegon Chronicle, January 22, 2009.

Wayland Casino Earns Victory

With a one-line ruling Wednesday, the U.S. Supreme Court appeared to clear a major path toward construction of a casino in Wayland Township.

The court declined to hear a long-running case filed by casino opponents Michigan Gambling Opposition against the government and the tribe trying to build the casino. The Gun Lake Band of Pottawatomi Indians said the decision clears the way for the construction of the $200 million Gun Lake Casino.

But Michigan Gambling Opposition, or MichGO, has asked a federal judge to temporarily block the casino effort. The judge has until 5 p.m. Monday to make a ruling.

If a stay is approved, the tribe would be unable to take into trust the land for the casino until the high court rules on a Rhode Island case that could have implications here. But if the stay is rejected, both sides agree, there would be little recourse left to stop the casino.

For the complete story, please see Chris Knape, Court ruling may clear casino's pathSupreme Court won't hear case filed by opponents of Wayland gambling site, Kalamazoo Gazette, January 22, 2009.

The Latest on the Wayland Casino

A U.S. Supreme Court decision expected later this year could determine the next chapter in a West Michigan Indian tribe's quest to build a casino.

Or, it might not.

After Wednesday's decision by the high court not to consider Michigan Gambling Opposition's long-running case against the tribe and federal government, the clock started ticking in another case filed by casino opponents arguing different points of law.

The judge in that U.S. District Court case, filed by Wayland Township resident David Patchak in August, was given three days to decide whether to impose a stay that would prevent land for the casino from being taken into trust for the Gun Lake Band of Pottawatomi.

A similar stay was in place for the duration of the MichGO case, but that stay was effectively lifted when the Supreme Court decided not to hear the case Wednesday.

If granted, a stay would again place the casino in legal limbo -- preventing the tribe from having officially recognized land where it can open its $200 million gaming facility until the court rules.

For the complete story, please see Chris Knape, Second case filed by Gun Lake Casino opponents still could block land trust, The Grand Rapids Press, January 21, 2009.

State's Losing Bets on Legalized Gambling

A number of U.S. states this decade bet the house on winning a share of legalized gambling's swelling jackpot.

Industry revenues reached $91 billion in 2006, the latest year for which data is available from the American Gaming Association, thanks to a spree of casino openings beyond Nevada and New Jersey, states that long ago opted to sanction casinos.

But with the U.S. economy in a year-long recession and consumers hoarding cash should hard times continue, casinos may no longer prove cash cows for state coffers -- as Kansas can attest.

Kansas enacted a law for the first state-owned casinos in the U.S. in April, 2007, betting that $200 million could be raised annually for debt reduction, capital improvements and property tax relief.

Now nearly two years later, private casino developers such as Penn National Gaming, LLC, and International Speedway Corp have dropped their plans for three out of the four casino sites, citing ailing economic conditions world wide.

For the complete story, please see Karen Pierog and Jim Christie, U.S. states losing bets on casinos, other gambling, Forbes.com, January 15, 2009.

Smoking Ban Push Begins for 2009.

Legislation will likely be pushed forward soon for a smoking ban in Michigan. Whether the ban will exempt certain groups such as casinos and/or bingos remains to be seen. We'll keep you posted.

For an article relating to this, please see Revival of Working Place Smoking Ban Already On Radar of New State Legislature, WGVU, January 9, 2009.

Vegas Strip to Face Challenging 2009/ Some Regional Casinos May Hold Their Own

Casino operators are likely to continue to face difficult times on the Las Vegas Strip in 2009, but regional markets could offer a ray of hope, a JPMorgan analyst said Wednesday.

The gambling sector has struggled as consumers have curbed discretionary spending due to eroding credit, the ongoing housing downturn, escalating food costs and unemployment concerns.

Furthermore, airlines have made capacity cuts to cope with the worsening economy and higher fuel costs. If fewer flights are heading to Las Vegas, it is likely that the casinos and hotels are hosting fewer visitors there even as they have continued to expand, noted JPMorgan analyst Joseph Greff.

"The idea that gaming is a recession-resistant industry is not true...not anymore at least. This is likely due to the fact that gaming is a more mature and widespread form of entertainment than in prior U.S. downturns and, in the case of the Las Vegas Strip, a more expensive consumer discretionary good," Greff wrote in a note to clients.

For the complete story, please see Sector Snap: Vegas Strip casinos face hard 2009
, Associated Press via CEP News, January 7, 2009.

MGM Mirage to Cancel CityCenter Condo Project

The Harmon Hotel & Spa – originally planned as a 49-story building with some 200 condominiums atop 400 hotel rooms, will no longer offer condominiums and instead will open in late 2010 as a 400-room hotel, MGM Mirage said today.

The Harmon, one of six towers at MGM Mirage's CityCenter resort complex under construction on the Strip, had been slated to open in November.

As first reported in the Las Vegas Sun early this morning, MGM Mirage was considering topping off The Harmon where the hotel ends, which would be a little more than half of its planned height, after months of extensive structural repair work that slowed progress on the tower.

MGM Mirage executives had recommended the change as of Monday afternoon but other parties involved in CityCenter, including the company's lenders and joint venture partner Dubai World, had not yet signed off on the decision.

By cancelling the condominiums, the partners will be able to avoid the need "for substantial redesign" of The Harmon "resulting from contractor errors," CityCenter Chief Executive Robert Baldwin said in a statement today.

The scaled-back building, as well as other cost-saving measures initiated by MGM Mirage amid this recession, will result in savings of about $600 million at CityCenter. Postponing The Harmon by a year will defer about $200 million in construction costs to fit out the building's interior, Baldwin said.

For the complete story, please see Liz Benston, MGM Mirage cancels CityCenter condo project, Las Vegas Sun, January 7, 2009.

Greektown Hires Firm to Turn Around Casino Operations

After months of financial struggles and bankruptcy proceedings, Greektown Casino has hired a Las Vegas-based firm to turn around operations at the downtown casino.

Pending approvals from the Michigan Gaming Control Board and the U.S. Bankruptcy Court, the Fine Point Group will try to boost profitability and improve operations at the casino, which filed for Chapter 11 bankruptcy protection in May 2008.

"We are known for extracting value from existing assets," said Randall A. Fine, managing director for Fine Point. "Our job is to maximize the value of the enterprise by improving profitability ... our firm is known for increasing revenues."

For the complete story, please see Mary Francis Masson, Greektown hires turnaround firm, Detroit Free Press, January 6, 2009.