Internet Gambling News #5

The Aladdin experiences financial woes, Sen. McCain reintroduces his college betting bill, Vegas casinos seek private rooms for high rollers, Caesars Palace defends its trademark on two fronts and Vegas vows to keep its lights on during the energy crises.

A Rough Go for Aladdin

If London Clubs International was given three wishes, one of them would most certainly be the recovery of its struggling resort on the Las Vegas Strip. The Aladdin, the newest mega-resort on the Strip, has endured huge financial problems during its opening months. Although it is not uncommon for new casinos to drudge through slow starts, gaming analysts have criticized the Aladdin for its poorly designed layout and its muddled marketing techniques. With a room occupancy of just 78.7 percent and a low daily slot payoff, the casino may not be able to keep up with its debts. Efforts to increase profits include redesigning the casino floor and a new innovative marketing campaign. The company expects the hotel's room occupancy to top 95 percent in April.

McCain Is Back

Sen. John McCain, R-Ariz., has reintroduced his bill to ban wagering in Nevada on college sports. McCain's NCAA-backed bill and an alternative bill proposed by the Nevada congressional delegation are scheduled to be heard in Congress April 26. If passed, the bill would outlaw the sponsorship, operation, advertisement, licensing or authorization of any type of gambling on amateur sports. The goal of the bill is said to be the closing of a loophole that makes illegal gambling on college campuses easier, corrupts the games and puts pressure on student athletes. The alternative Nevada bill calls for stricter enforcement of existing gambling laws and a national study of illegal gambling. American Gambling Association President Frank Fahrenkopf calls the McCain bill a misguided attempt to absolve the NCAA of any responsibility to police itself.

Casinos Seek Privacy for High Rollers

International billionaire gamblers who want to maintain privacy for cultural or other reasons trust the name and integrity of top casinos like MGM Mirage and the Aladdin. However, a current law, which requires all gaming operations to be conducted in public, has the high rollers shying away from the Nevada casinos. Executives of the casinos testified before the Senate Judiciary Committee last Thursday in support of Senate Bill 283. The bill would allow casinos to include exclusive gambling salons for these high stakes gamblers. The committee has yet to take action on this proposal.

Caesars' Biggest Fan

Lucky high roller Robert Ben recently won a whopping $2 million jackpot at Caesars Palace. Granted, he was playing a three-coin $500 Triple Diamond machine. At $1,500 a pull, hitting anything would be worth while. If you think you've finished hating Mr. Ben, wait until you've heard that in 1995 he also won $1 million in the Caesars Slot Tournament. Prior to that, he won $250, 000, also at Caesars. "There's something about Caesars Palace that makes me feel lucky," says Ben.

Not Caesars' Biggest Fan

A Las Vegas beauty salon can no longer market itself as "Scissors Palace" after loosing a court battle over trademark infringement against Park Place Entertainment Corp.'s Caesars World Inc. Caesars World Inc. operates the Venus Salon, which offers similar spa and beauty services. Caesars claimed that it could lose business to Scissors Palace, who not only used the name but also Park Place's signature Roman-style lettering on signage and in advertisements. "Scissors Palace knew or should have known that (it) was taking a serious risk in imitation Caesars World's famous mark," stated U.S. District Judge Kent Dawson.

Meanwhile, Park Place is currently reloading to do battle with another group over a similar trademark infringement. The company recently filed suit against a nude dancing club in Vegas that's marketing itself as "Teasers Palace."

Taste the Wine

Attention connoisseurs of fine wines! There will be a wine tasting event on April 26 from 6 to 8 p.m. in the Pompeiian Ballroom at Caesars Palace. For 45 dollars, you can sample more than 100 different red zinfandel wines. For more information, log on to www.zinfandel.org.

Spin for the Gold at Riviera

The Riviera Hotel & Casino will be holding it's "Spin for the Gold Million Dollar Tournament" June 7-11. The person with the highest combined score from all three days will get $600,000, on the spot! The "Full Package" will run you $1,499, but you will get entry to all three days of the game, a room for four nights, two tickets to the awards dinner, unlimited drinks, a gift and a hundred bucks in food credits. Registration is June 7th, call 1-800-637-5687.

Golden Nugget Makes Room for New Restaurant

The Golden Nugget hotel-casino in downtown Las Vegas will soon be closing its California Pizza Kitchen restaurant to make way for a new restaurant and entertainment venue that will include late night services. The restaurant employees will be offered jobs elsewhere in the hotel-casino until the new restaurant opens by the end of the summer. The Golden Nugget recently added a Starbucks coffeehouse and is renovating about 400 hotel rooms this summer as well.

The Future Is Bright

The neon illumination of the Las Vegas Strip will continue full-force despite witnessing the electricity woes of California. Although the Nevada Public Utilities Commission is predicting the coming of a power shortage and has instituted a singe 25 percent rate hike for casinos, the gaming industry is not going to dim a single light bulb on outside signage. "Las Vegas has an image and certain cachet it has to live up to, and that includes the exterior lighting and the neon and the marquees," said John Marz, a vice president of the Mandalay Resort Group.

The casinos will be taking measures to reduce interior power usage to save money during the impending price hikes. Their efforts will include switching interior light bulbs to a lower wattage, installing more thermostats to control the climate of empty rooms and using motion sensors to keep lights off in unoccupied rooms. Meanwhile, they are fighting the price increases in the hopes of getting lower rates. Considering for a moment that a single hotel-casino on the strip uses the same amount of electricity as 10,000 residential homes, slightly lower wattage consumption couldn't hurt.

Manday, Boyd to Expand Convention Facilities

Despite the fears of many that a general slowdown on the Las Vegas Strip is inevitable, the Mandalay Resort Group and Boyd Gaming Inc. are planning expansions of their convention operations. It's actually a smart strategy according to gaming analysts. Hotels need to find ways to fill rooms during the mid-week periods. More convention space would not only attract larger trade shows but would also provide space to hold concerts, dances and other special events. Casinos have yet to admit that a slowdown is coming, but even if there was one, gaming analyst Robin Farley thinks Mandalay and Boyd should proceed with their expansion plans. "You're talking about demand two to three years out," Farley said. "You have to look beyond what's happening (today)."

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