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Galaxy Sells $600 Million Bonds

MACAU – As reported by the Dow Jones: "Macau's Galaxy Casino S.A. Wednesday raised US$600 million of debt in what is only the second bond from the gaming industry in Asia outside Japan. "The deal - also the first high-yield bond from the sector in the region - comprised a US$350 million fixed-rate portion maturing in seven years and callable after four years and a US$250 million floating-rate tranche due in five years and callable after three years. "The fixed-rate portion was priced at par to yield 9.875%, at the tight end of revised guidance of 9.875%-10.0%. "…The deal - increased from an originally anticipated US$500 million - had drawn US$2.25 billion in orders by late trading day in Asia Wednesday after the borrower spent over a week meeting with investors in Asia, Europe and the U.S…"

PartyGaming Shares Jump

UNITED KINGDOM – As reported by Bloomberg: "PartyGaming Plc, the world's largest online poker operator, expects full-year profit to exceed analysts' estimates after customers played more poker and started trying new casino games such as blackjack. The shares jumped. "Daily poker revenue increased 14 percent to $2.67 million in the two months ended Nov. 30 compared with the average for the previous quarter, Chief Executive Richard Segal said today on a conference call. Daily casino revenue was as much as seven times higher than the average for the third quarter at $1.2 million after the company introduced blackjack on Oct. 8, he said. "…PartyGaming is returning to favor with investors after signs of a slowdown in revenue growth caused its stock to drop below the price of June's initial public offer. Investors applied for three times more stock than was available in the $1.9 billion share sale on expectations that the popularity of online poker will spur growth in an industry that's expanded 10- fold in three years. "Shares of PartyGaming rose as much as 10.5 pence, or 9 percent, to 127.5 pence in London and were 125 pence at 9:50 a.m. local time. The stock was sold to the public at 116 pence a share and climbed as high as 176 pence in July. It slid below the IPO price on Sept. 6 as the company said revenue missed forecasts…"

NEC Pushed to Decide on Super-Casino

UNITED KINGDOM – As reported by icBirmingham: "The National Exhibition Centre has been told by one of its own board members to put its plans for a super-casino on the table or withdraw from the race. "Ken Hardeman - Birmingham cabinet member for regeneration - said the NEC had failed on several occasions to publish details of its proposals and risked being overlooked for the multimillion pound venture. "…The Department for Culture, Media and Sport now wants to reach a decision by next June rather than the end of 2006. "The change gives Birmingham City Council less than six weeks to decide whether to support the NEC scheme or a rival bid for a multi-purpose sports stadium and casino by Birmingham City FC and Las Vegas Sands…"

Arizona Casino Depends on Votes

ARIZONA – As reported by the East Valley Tribune: "A 15-story hotel casino could rise just east of Scottsdale's border if voters in the Salt River Pima-Maricopa Indian Community approve a change to building height restrictions. "If successful, the Dec. 19 ballot initiative would allow construction of a new structure to replace the two metal tents that house Casino Arizona at Talking Stick, on Indian Bend Road east of Loop 101. "It also would allow for buildings as tall as six stories, or 80 feet, along the freeway. "…Casino Arizona CEO Jon Jenkins said the Indian Bend tents, which opened in 1999, are nearing the end of their useful lives…"

California Tribe Suspends Talks

CALIFORNIA -- As reported by the Amador Ledger: "On the urging of the governor's legal aides, the Buena Vista Band of Me-Wuk Indians this week suspended discussions with Amador County officials on the environmental effects of a proposed $200 million casino south of Ione in Jackson Valley. "'Negotiations for the county and the tribe to enter into an inter-governmental agreement to mitigate impacts from the tribe's proposed Flying Cloud Casino at Buena Vista have been suspended indefinitely pending the tribe's completion of its environmental review process,' said County Administrative Officer Patrick Blacklock on Monday. "The tribe wants to build a 2,000-slot casino on a two-lane road south of Ione. The tribe is proposing a 245,000-square-foot complex of gambling, dining and entertainment. The casino would occupy about 15 acres of tribal land and employ almost 2,000 people. "…Gov. Arnold Schwarzenegger urged the tribe to decertify the Tribal Environmental Impact Report, or TEIR, because it did not contain the information required by the tribe's amended compact with the state. The tribe has said that it will prepare a new report and seeks the cooperation of the county. County officials urged the tribe to begin with a new draft report so that affected agencies and individuals can comment on the new proposal…"

Governor: Tribe Must Pay for Table Games

CHEROKEE, North Carolina – As reported by the Asheville Citizen-Times: "The Eastern Band of Cherokee Indians must offer the right amount of money before winning permission to have card dealers at Harrah's Cherokee Casino, Gov. Mike Easley said in an interview. "Teams from the Eastern Band and governor's office have been meeting monthly since April over the possibility of changing the 2000 gaming compact with North Carolina. The tribe wants card dealers for games such as poker and blackjack. "In documents sent to Easley, the Eastern Band has said Western North Carolina could see 430 new jobs with a payroll of $15.2 million if the state allows live poker, craps, blackjack and other new games. "…Since the video gambling machine operation opened in 1997, the 13,000-member tribe has created a business that brings in an estimated profit of $155 million annually. "…The tribe's five-year-old gambling agreement with North Carolina requires the Eastern Band to spend $5 million in gambling revenue each year to fund a foundation that pays for projects that promote non-gambling economic development, protect the environment and preserve Cherokee heritage and culture. "Beyond the foundation, the tribe is not required to pay a fee for gaming rights. "…Some tribes pay for the right to have live card dealers, said Shawn Pensoneau of the Washington D.C.-based National Indian Gaming Commission, which regulates gambling on Indian reservation…"

House Angers Gaming Companies

By Steve Tetreault and Howard Stutz Las Vegas Gaming Wire WASHINGTON -- The House voted Wednesday to offer tax breaks as incentives for hurricane-battered businesses to rebuild in the Gulf states, except for casinos and other recreation that critics said did not merit federal help. The measure could set back gulf reconstruction efforts by Las Vegas-based gaming corporations such as MGM Mirage and Boyd Gaming Corp. and smaller companies whose casinos were damaged or destroyed by Hurricane Katrina and Hurricane Rita this summer. The gaming industry was disappointed by the exclusion. "The commercial casino industry should be treated like any other legal business working to rebuild along the hurricane-ravaged Gulf Coast, especially since our industry is the economic engine of the region," said Frank J. Fahrenkopf Jr., president and chief executive of the industry's main lobbying group, the American Gaming Association. Almost two dozen Gulf Coast casinos were destroyed, damaged or temporarily closed by Hurricane Katrina on Aug. 29 and Hurricane Rita on Sept. 24. In Mississippi, Hurricane Katrina displaced 17,000 casino workers in wiping out 13 casinos in Biloxi, Gulfport and Bay St. Louis. "We don't want special benefits; we just want to be treated like any other business," said Harrah's Entertainment Senior Vice President Jan Jones. Harrah's had employed 9,400 workers in four Gulf Coast casinos. Three casinos in Biloxi, Gulfport and Lake Charles, La., were destroyed by the hurricanes and Harrah's New Orleans, Louisiana's largest casino, is closed indefinitely. "For an employer of our size and the single most important driver of tourism in the Gulf Coast, we only want to be treated fairly," Jones said about the Gulf Coast gaming industry. Boyd Gaming Corp., lost revenues from the Treasure Chest casino in New Orleans for seven weeks after flooding devastated the city. Company spokesman Rob Stillwell said the casino should receive the same benefits as other businesses in the areas affected by the hurricanes. "There is no reason why a business down the street should benefit, and we can't," Stillwell said. MGM Mirage is rebuilding the Beau Rivage, Mississippi's largest casino-hotel, and expects to reopen the business, which employed 3,100, in the next 12 to 16 months. "This is just very unfair to the men and women of the casino industry," said MGM Mirage spokesman Alan Feldman. "All it does is delay the process and keeps prolonging the uncertainty." Many Gulf residents and businesses have said they are looking toward the gaming industry to help the region's tourism base recover, he said. "Any reasonable person can see how unfair it is to cut the casinos out of the tax relief package," Feldman said. "It was just a vindictive and punitive move on the part of Frank Wolf." Wolf, a Republican representative from Virginia and a critic of the gaming industry, sought the exemption in a bill to help hurricane victims. He gathered support for the proposal from several dozen other lawmakers. The bill creates a Gulf Opportunity Zone within hurricane-blasted counties in Louisiana, Alabama and Mississippi and offers increased tax credits and depreciation bonuses for qualifying businesses that try to rebuild. The bill exempts private or commercial golf courses, country clubs, massage parlors, hot tub and suntan parlors, liquor stores and racetracks or other facilities "used for gambling." The Gulf bill passed 415-4. The lawmakers who voted against it were Nevada Republicans Jim Gibbons and Jon Porter and Nevada Democrat Shelley Berkley, and Frank LoBiondo of New Jersey, a Republican who represents Atlantic City. The Senate has passed tax legislation that qualifies the gaming industry for hurricane recovery aid, and the issue is expected to be decided in conference committee. "We have been winked at not to worry, that this would be taken care of," Berkley said, meaning the House provision would be killed in conference. The Bush administration has signaled it opposes the restrictions, and Mississippi senators and others including Harry Reid, D-Nev., were urging they be dropped. Sen. Trent Lott, R-Miss., urged Republican leaders "to reject calls from some to discriminate against legal businesses in the Gulf region and pass this bill." He added, "Mississippians living in tents and temporary housing are waiting for the jobs and opportunities this bill will create." Gibbons said, "It is regrettable that some in Congress are willing to put the hardship of one displaced individual who may work for a refinery or a grocery store over another individual who happens to work in the gaming industry." Berkley said Republican leaders agreed to insert Wolf's restrictions into the hurricane bill to win his support for more comprehensive tax break legislation the House is expected to debate later this week. "I am outraged the Republican leadership caved in," she said. Industry supporters have said casinos have employed close to 50,000 people and paid more than $760 million in taxes to Louisiana and Mississippi. But Wolf argued the industry's vitality was a reason it should not be given aid. He said casinos and recreation businesses such as liquor stores and golf courses often have been excluded from qualifying for federal development benefits. "How can we stand up at a town meeting with our constituents and explain providing tax breaks to rebuild massage parlors, liquor stores and record profit-making casinos?"

Nevada Control Board Approves $370 Million Deal

By Ed Vogel Las Vegas Gaming Wire CARSON CITY -- After less than 10 minutes of discussion, the Gaming Control Board gave its unanimous consent Wednesday to the $370 million purchase of the Imperial Palace by Harrah's Entertainment. "We seem to have Harrah's on every agenda," quipped Gaming Control Board Chairman Dennis Neilander. He noted that the purchase of the 2,640-room hotel will be important for Harrah's from "a real estate perspective." With the purchase, Harrah's controls significant acreage in Las Vegas, mainly along the east of Las Vegas Boulevard between The Venetian and Aladdin. Ted Jenkin, Harrah's Western Division president, said the company has not yet decided what it ultimately will do with the Imperial Palace. The hotel-casino for now will remain open with the same management team, he said. "Hopefully we can make it more profitable, while we make a determination on what is best for the site," Jenkin said. The purchase will not be complete until after the state Gaming Commission reviews and approves the acquisition at its Dec. 22 meeting. Harrah's has been acquiring new properties in Las Vegas throughout the year. Its $9 billion buyout of Caesars Entertainment was completed in June. Harrah's now operates the Flamingo, Caesars Palace, Bally's and Paris Las Vegas on the Strip. The Imperial Palace was built by the late Ralph Engelstad, a North Dakota-born contractor, who initially operated it as the Flamingo Capri motel. He later enlarged the property into the Imperial Palace, which featured low-priced rooms and a classic automobile collection. Separately, the control board also gave unanimous approval to allow Navegante, a company managed by veteran gaming executive Larry Woolf, to operate four downtown Las Vegas casinos. The company will begin operating the Plaza, Gold Spike, Las Vegas Club and Western Hotel on Dec. 23 if it receives Gaming Commission approval. "We need to fill holes on the staff," Woolf said. "There has been confusion on who is in charge, and the more sophisticated help have left. We need to get in and operate them as best as we can." Neilander said his checks of the casino's earning records shows that even if there is not any growth in revenue all debts can be paid." The hotels now are owned by Barrick Gaming Investments and the Tamares Group, companies that are in litigation. Barrick attorney Anthony Cabot said Tamares "has not paid us what we think is the amount due" to complete a transfer of interest. He said Tamares owes Barrick $12 million, but wants to pay only $6.5 million. But Neilander said their dispute has nothing to do with management of the four downtown Las Vegas casinos and instead dealt with a disagreement over the Nevada Club. "The regulatory system is being injected in a commercial dispute," he added.

Take out the Pros, Win $25,000

Bounty Tournament Takes Place Every Week at Doylesroom.com Doyle Brunson is looking for sharpshooters. His online poker room, Doylesroom.com, is now offering a weekly multi-table bounty tournament in which players have a chance to earn an extra $25,000 for knocking out the pros. The tournament will also be capped at 999 players. The tournament costs $27.50 but first-time players are eligible for a complete rebate. Winning the $25,000 bonus won’t be easy. To collect it, a player has to knock out all three poker pros who happen to be playing in that night’s tournament. If they manage to knock out only one player, they receive $250, while knocking two poker pros out nets the player $10,000. It takes three knockout punches to collect the $25,000. Tonight, Doyle Brunson, Mike Caro, and Minh Ly will be playing with targets on their backs. The website also sports a page with head shots of the people who knocked out the pros in a cool western-style motif. Under each of the photos it says who the player knocked out, like "I beat Doyle!" The tournament takes place every Thursday at 9 p.m. EST.

Paddypowerpoker.com to Hold Grand Slam of Poker

European Teams to Face Off for Top Title Online poker site Paddypowerpoker.com announced it will sponsor the Paddypowerpoker.com Grand Slam. On Jan. 10, 2006, teams from England, Ireland, Scotland, Wales, Northern Ireland, France, and Sweden will converge on the Star City Casino in Birmingham, England, fight for the Grand Slam title. It will be filmed before a live studio audience and televised as six one-hour shows in Europe beginning in March. Each of the seven countries will send a team of six players. The players will accumulate points based on where they finished the tournament. The longer a player lasts, the more points the player earns. The team with the most points divides a prize of €110,000. Players will also vie for the top three spots, which pay out €50,000, €30,000 and €20,000, respectively. Including in the tournament is a half-time period during which teams gather and share strategy and information about how to play opposing players. This will be filmed and broadcast. Although most of the teams will be made up of invited pros, several seats are up for grabs through satellites at Paddypoker.com. The Ireland and Northern Ireland teams will take two online qualifiers, and the English team one. The confirmed captains of the teams are: Ireland, Donnacha O’Dea; Northern Ireland, Ivan Donaghy; Wales, Dave Colclough; England. Gary Jones; and Sweden, Chris Bjorin.