By Staff   Fri, Feb 19, 2010

Kansas Approves Themed Casino at Popular Speedway

The Kansas Racing and Gaming Commission last week gave unanimous final approval for Penn National Gaming Inc. and its partner, International Speedway Corp. to build a Hollywood-themed $368 million state-owned casino resort in Wyandotte County adjacent to the Kansas Speedway, just outside of Kansas City. The approval came after the commission finished background checks on all of the participants.

At the same time the Kansas Lottery was near to an agreement with Chisholm Creek on a $225 million hotel and casino near Mulvane.

The partners, whose joint venture is Kansas Entertainment LLC, are expected to break ground on the Hollywood Casino during the summer and open in early 2012, according to Lottery Executive Director Ed Van Petten. They made it official by sending a check for the $25 million "privilege fee" to the state last week.

Penn National CEO Peter Carlino issued a statement praising the development. "Today's approval formally cements our role in the Wyandotte County community, and we are excited to begin working alongside our partner, International Speedway Corp., and with local businesses to construct a distinctive, first-class entertainment facility and destination resort."

Lesa Kennedy, CEO of the other partner, International Speedway , added, "The casino is just a starting point of all the good things to come as we fulfill our commitment to seek a second NASCAR Sprint Cup Series Race."

Kansas City Mayor Joe Reardon was also enthusiastic about the final approval. "Our community has worked hard for the opportunity to bring casino gaming to Wyandotte County and we are excited to see that opportunity become reality today. We look forward to working with our partners, International Speedway Corporation and Penn Gaming to ensure that a world class gaming venue is under construction as soon as possible," he said according to WDAF-TV.

The Hollywood Casino will be built in phases. Phase 1 will include a 100,000 square foot gaming floor to house 2,300 slot machines and 86 gaming tables, a lounge, dining venues and entertainment. A second phase, which could bring the resort's final costs to $700 million, would include a hotel, spa, convention center and an entertainment, retail center. International Speedway has also promised to seek a second Sprint Cup Series race from NASCAR for the speedway. As many as 1,700 workers could be employed in the construction phase of the project.

Now that it has the final approval, Kansas Entertainment is casting its net to assemble a design team. About 1,000 construction workers could be employed during the two-year project.

Estimates are that the casino will generate $203 million in revenue during its first year, paying 22 percent to the state and 5 percent to the Wyandotte County government.

Van Petten said that after ten works on negotiations that a verbal agreement has been reached with Chisholm Creek for the Mulvane casino in Sumner County but that some details need to be worked out, such as an agreement between the developer and a third party, Double Down Development of Topeka, to develop a 100-room hotel at the site and a possible delay in final construction of some parts of the development of up to 12 years plus financial safeguards if the Wyandotte Nation develops a casino on ten acres in Park City. The tribe has so far unsuccessfully sought to put the land into federal trust. However, a report commissioned by the lottery projected that such an Indian casino, if built, could draw off a fifth of the Chisholm Creek's casino's revenues. As an Indian casino it wouldn't have to pay a large portion of its revenues in taxes to the state, making it more competitive towards Chisholm Creek.

If those issues are ironed out, the developers could break ground in May, said Van Petten. "We're there, I think," he said, although he added that it might take up to four months for the final contract to be approved.

In the original proposal Chisholm Creek had planned a $125 million first phase of a casino that would have 1,300 slot machines, 30 table games, dining venues and an entertainment hall. Under the new contract the hotel would also be built in the first phase.

There continue to be no bidders for the southwest zone, which includes Crawford and Cherokee and which is the subject of a bill that is being discussed in the legislature. The Senate Federal and State Affairs committee has been holding hearings on the bill, which would lower the minimum investment required for the southwest zone from $225 million to $100 million.

There was a potential bidder for the southwest zone last year, but the bidder wasn't able to raise the required investment. The deadline for applications for the zone will be extended until April 16.

Meanwhile, the first state-owned casino resort to open in Kansas, the Boot Hill Casino & Resort in Dodge City, reports that it will make close to $40 million for the first year, if trends continue.

The casino, operated by Butler National Corp., reported revenues of $5.1 million from December 15, when it opened its doors, to January 31, with 100,847 players. The state's share of those profits is $1.1 million.

That's actually a little less than the $44 million per year net revenues that had been projected, although Ed Van Petten, executive director of the Kansas Lottery, which operates all gaming in the state, said he was pleased. "I think things are going well," he said.

The casino's general manager, Mike Tamburelli, was also happy. "We're certainly on track," he said.

Boot Hill is a smaller casino resort than is envisioned for the other casino zones in the state. It has 584 slot machines, 10 blackjack and poker tables, one roulette wheel and a craps table.

Sat, Feb 20, 2010

In a cruel twist of fate, less than a year after opening the highly successful Firekeepers casino in Battle Creek, Michigan, Laura Spurr, the tribal chairwoman of the Nottawaseppi Huron Band of the Potawatomi Indians, died of a heart attack while attending a conference in California.

The 64-year-old Spurr was instrumental in the process that required the tribe to petition the government to take land into trust for the casino, one of only four times that has occurred. Then, she directed the construction and financing of the casino, especially difficult during an economic downturn.

But after the casino opened last August, it was immediately successful and contributed hundreds of jobs for the tribe and the surrounding communities. But she wanted to see the tribe's economy diversify even more.

"Hopefully we will have communities that want to work jointly with the tribe, and potentially there are things we could do together down the road-possibly small manufacturing for people who can't get into the gaming industry because of past history," she told the Western Michigan Business Review in 2008.

Spurr's accomplishments, however, went far beyond the casino. She graduated from the University of Michigan in 1967 with a BS in nursing and for ore than 40 years, she worked as a nurse in different practice settings in the cities of New York, Washington, D.C, Chicago, and Grosse Pointe. In these hospitals she practiced at different levels of administration with the responsibility for supervision and directing patient care. She also taught nursing at different times in her career, and while working in Chicago she completed the course work for a master's degree from DePaul University with a double major in nursing administration and education. While living in Washington, she served as chairwoman of the Personnel Committee for Planned Parenthood of Metropolitan Washington, was on the D.C. Government Committee of the League of Women Voters, and was active in the Metropolitan Hospital Organization.

She believed, however, that the casino was the key to the tribe's future.

"We're going to use this casino as the source of funds to get involved in other kinds of economic development," she told the Business Review. "We wouldn't like to open another casino, because it's just limited. We would want to get involved in other things that would provide long-term jobs and opportunity for tribal members.

"There's all kinds of things-working in hospitals, doing research, becoming bankers if they want to do that. We're hoping to get them involved in those things, to expand horizons."

Fri, Feb 19, 2010

After getting his start as a hotelier in New York with Waldorf Astoria, Barry Shier joined Steve Wynn at the Golden Nugget in Las Vegas as vice president of hotel operations. He later helped Wynn open the Atlantic City Golden Nugget and later took the lead in developing the Beau Rivage Casino Resort in Biloxi, Mississippi. Shier left Mirage Resorts when it was purchased by MGM Grand in 2000. He has been working behind the scenes on many projects, but last year formed the Partner House to help distressed properties recover and provide services to lenders that are slated to take over those properties. Shier's grasp of property valuations and potentials are sure to be in high demand. He spoke with Global Gaming Business Publisher Roger Gros at his office in Las Vegas in December.

Fri, Feb 19, 2010

As often happens during the Olympics, a torch has been passed-this one on the National Indian Gaming Commission.

Norman H. DesRosiers, vice chairman of the commission, ended his three-year term at the end of January and passed on the responsibility to Steffani A. Cochran, who took office around the same time. DesRosiers left to take a position on the San Manuel Band of Indians' gaming authority.

During his tenure, which DesRosiers said was a very contentious time in Indian gaming, the Department of Interior established a regulatory agency under the Indian Gaming Regulatory Act (IGRA) to oversee tribal gaming. During that time DesRosiers, who had many years of tribal gaming experience before he joined the commission, was in the thick of things providing input and advice on issues facing the commission. He led the implementation of the Government Performance and Results Act requirements and proposed standards for Class II gaming. It was that proposal and the reaction of gaming tribes to it, that turned out to be the most controversial of his tenure, although the technical standards proposed for Class II gaming were adopted.

During most of his tenure there were only two members on the commission, instead of the normal three. That remains the case today.

Commissioner Cochran is a member of the Chickasaw Nation of Oklahoma who has been special counsel for Indian Affairs in the New Mexico Attorney General's Office and general counsel for the Pueblo of Pojoaque.

Fri, Feb 19, 2010

Great Canadian Gaming Corporation recently announced that it will be changing its executive team as part of the restructuring process the company began in 2008.

Rod Baker, a senior adviser to Great Canadian Gaming, has been appointed president of the company. Baker has advised the company for the past 18 months, contributing to its restructuring. Baker will oversee the company's operations.

Peter Goudron has been promoted to the position of vice president of River Rock Casino Resort. Prior to his promotion, Goudron served as vice president of casino operations and vice president of planning and development.

Terrance Doyle will serve as Great Canadian Gaming's vice president of property developing and procurement, overseeing the company's redevelopment projects. Doyle worked as the executive director of planning and development prior to his new appointment.

"I am very pleased to announce these changes to our executive team," said Great Canadian Gaming Chairman and CEO Ross McLeod. "Despite the downturn that weakened the global economy throughout 2009, Great Canadian achieved significant improvements in both our efficiency and our financial performance. These three individuals, in combination with the other members of Great Canadian's management, played a critical role in facilitating these improvements. They will continue to optimize our operations from within their new positions, as well as assisting in Great Canadian's efforts to reverse the revenue trend witnessed through nine months of 2009. I believe that all of Great Canadian's stakeholders will benefit as a result."

Fri, Feb 19, 2010

Gibraltar-based Internet gambling operator PartyGaming has appointed Per Widerstrom to the position of chief operating officer, effective immediately. The position is a new one for the company.

Prior to joining PartyGaming, Widerstrom served as CEO and director of Mangas Gaming Malta Limited. Widerstrom also worked for Expekt.com Limited, as the company's CEO and director; Kyivstar GSM as vice president and COO; Telenor Mobile Sweden as CEO; and Coca-Cola as operational marketing and business development director.

"I am delighted that we have secured the services of such an internationally experienced and multi-disciplined executive as our chief operating officer," said PartyGaming CEO Jim Ryan. "Per will report directly to me and will be primarily responsible for driving growth across the PartyGaming brands. He has a great track record for leading business operations and delivering results. I'm confident he will be a great asset for PartyGaming as we push ahead with our strategic plan."

Fri, Feb 19, 2010

Seneca tribal member and former casino opponent Susan P. Abrams has been accused of possible illegal activity that could rise to the level of extortion, according to a Seneca watchdog agency and Seneca Gaming Corp. counsel Barry W. Brandon.

Abrams, who fought tribal gaming in the 1990s as a member of Senecas Against Casinos and Citizens Against Casino Gambling in Erie County, now works as tribal operations manager for Seneca treasurer Jacqueline Bowen. Her attempt to get a $2 million contract from the architect of the Buffalo Creek Casino, according to the watchdog agency, "may constitute illegal activity."

According to the Buffalo News, Abrams demanded 2 percent-or $2 million-from SOSH Architects of Atlantic City, architect of the Buffalo Creek Casino, because SOSH lacked a Seneca partner.

Brandon said in a letter that Abrams apparently "was expecting to be paid a fee because she is Seneca and for no other apparent reason."

He urged Seneca Gaming "to stop this behavior and to ensure that our vendors are not required to comply with these unscrupulous attempts at extortion."

Abrams denied any wrongdoing, and is now filing a lawsuit "against certain parties involved in the continued attempt to unduly injure me with unsubstantiated statements, information and opinions not based on facts or truth."

Fri, Feb 19, 2010

Belgium-based card producer Cartamundi has acquired Naipes Comas, Spain's oldest existing playing card manufacturer.

Naipes Comas has a history dating back to 1797. The company remained solely in the hands of the Comas family until 1954, when new partners were taken on and the firm Naipes y Especialidades Graficas S.A. created.

"This takeover reinforces our position on the Spanish market," said Chris Van Doorslaer, CEO of Cartamundi. "Since 2002 Cartamundi has had a sales subsidiary in Barcelona, but we lacked the traditional Spanish faces that are important to achieve a breakthrough in Spain."

The "traditional Spanish faces" refer to the symbols used on Spanish cards. Instead of the four suits used internationally in casinos, cards produced for the Spanish public feature the clubs, cups, swords and coins generally associated with tarot cards.

The Comas product range features international and local playing cards, tarot decks, promotional cards, cards for children's games and collectibles. Included in the mix is the Dali Tarot deck, specially designed by the famed artist for the 1973 James Bond film, "Live and Let Die."

Cartamundi has its own extensive range of products for consumers and commercial enterprises, including cards for casino use. The company produces licensed cards based on popular film franchises such as James Bond and Harry Potter, and was named Disney's "Licensee of the Year" for its Disney Pixar Action cards.

Production of Comas cards and the Dali Tarot deck will be transferred to the Cartamundi home facility at Turnhout, Belgium.

Cartamundi is also said to be negotiating the takeover of an unnamed card manufacturer in India.

Cartamundi generated sales of €123 million in 2009. The company employs 1,000 people at manufacturing facilities in Belgium, Germany, U.K., Poland, U.S.A., Brazil and Mexico and sales offices in the Netherlands, France, Spain, Sweden, Switzerland, Hungary, Chile and Singapore.

Fri, Feb 19, 2010

Slot manufacturer Atronic International and Atomic Gaming, the company's distributor in Africa, announced the installation of Stargate SG-1, a progressive bonus video slot based on the popular TV show and film, in several casinos across South Africa.

Stargate SG-1 features five separate video bonus features based on sequences from the TV show. When a bonus is triggered, the computer selects one of the five bonus games at random,

The slot is now live in several South African casinos, after a December launch at the Wild Coast Sun.. The game also is installed at Carnival City, the Golden Horse Casino in Pietemaritzburg, Emperor's Palace, Sibaya and Boardwalk Casino.

Gerhard Reiter, Atronic's international product manager for Africa, said, "We have been monitoring the performance of Stargate SG-1 since the machines went onto the floors in South Africa, and in some cases the performance is double the area average, which is also what we are seeing in Europe."

Fri, Feb 19, 2010

The 5th annual World Game Protection Conference is set to begin February 21 in Las Vegas at Caesars Palace. Casino executives from around the world plan to attend the conference to learn new strategies and more advanced technologies in casino surveillance and game protection.

The conference's keynote speaker will be Kevin Mitnick, a famous former hacker turned IT security consultant, who will speak about "The Art of Intrusion." Mitnick plans to share insider secrets from the hacking world, and discuss two casino security studies that reveal how hackers break in and cover their tracks.

"The 5th annual World Game Protection Conference will provide attendees vital information and insight into running and maintaining a successful business in the casino industry," says Willy Allison, founder of World Game Protection and the World Game Protection Conference. "I am honored to have Kevin Mitnick present the conference's keynote presentation, and to welcome all the other industry insiders and professionals presenting at and attending this event."

Fri, Feb 19, 2010

MGM Mirage recently announced that it has partnered with ESS Analysis and A.T. Kearney, two consulting firms that will assist the company in upgrading its customer database.

"We are very pleased to announce the latest evolution of our marketing program, which adds the strength of business analytics to our strategic plan," Bill Hornbuckle, MGM Mirage chief marketing officer, said in a statement. "This initiative increases our ability to cater to our guests' personalized needs with a one-to-one marketing outreach."

While companies like Harrah's have been expanding their rewards programs over the past several years, MGM has said in the past that it does not take advantage of its players club card program. Using analytics software, the company hopes to integrate data and use sophisticated software to send out special offers to players.

"This new initiative positions MGM Mirage to lead the industry in the design and development of innovative products and services to respond to the changing needs of its customers," Ranjan Mishra, president and founder of ESS Analysis, said in a statement. "MGM Mirage has tremendous assets-both physical and intangible-to build upon its customer loyalty program. We are very excited to be a part of this transformation."

Fri, Feb 19, 2010

Lottomatica subsidiary GTECH Global Services Corporation announced that it has extended its contract with Czech lottery company Sazka to the end of 2022. Under the contract, GTECH operates and maintains Sazka's online system and terminals.

The new agreement also provides for upgrade of Sazka's communication infrastructure to a new satellite-based IP network.

"We are pleased to continue the strong relationship we have developed with Sazka since 1993," said Jaymin B. Patel, president and CEO of GTECH Global Services Corporation. "This is a testament to the value of our partnership as well as to the success of our cooperation."

"The significance of our cooperation is best documented by figures," added Sazka chairman Aleš Hušák. "Since 1993 the company's sales generated from betting and lottery business have increased by more than three and a half times, from US$121 million to US$443 million. In addition to new betting games and lotteries, we launched a number of non-lottery products and services, where Sazka ranks among top leaders globally, over that period."