The Latest Spin on Gaming

Luck hasn't been entirely on the side of the gaming industry this spring, as the fallout from casino closings persists in Atlantic City, and international stakeholders are seeing soft performance from their casinos in Macau. But the industry is still experiencing strong investment, particularly on U.S. shores, and planners will note a bevy of developments in a growing number of destinations.

Las Vegas experienced a record year of visitation in 2014, and the city expects another healthy increase in the number of meeting attendees this year. Massachusetts and Pennsylvania continue to award state gaming licenses to eager parties, and Reno, Nev., is seeing significant investment from the corporate sector, from companies like Apple, Tesla and Amazon. All of this translates to new venues and opportunities for planners. Check out our annual roundup of developments by destination on the pages that follow.


LAS VEGAS

The U.S. capital of gaming is again thriving. Las Vegas broke the 40 million mark for number of visitors in 2014, drawing 41.1 million to the desert oasis. That's nearly one and a half million more than its previous high mark, 39.7 million, set in 2012. Group business is similarly strong: A dozen new or rotating large shows will either debut in or make their way back to Vegas this year, bringing with them an estimated 242,000 attendees and generating nearly $315 million in nongaming local revenue.

Accordingly, there is more development going on in the city than there has been in a number of years. The Las Vegas Convention and Visitors Authority has kicked off its $2.3 billion Global Business District development with a splash, purchasing the iconic Riviera Hotel & Casino in February to use the site for the expansion of the Las Vegas Convention Center. The previous owners of the facility are now leasing the property from the LVCVA and plan to close the business as of August. At that point, the authority will demolish the Riviera to make way for Phase 1 of the convention center expansion on the 26-acre, Strip-facing lot.

As part of the overall 1.8 million-square-foot facility expansion, the Riviera lot will accommodate 750,000 square feet of convention center exhibit space plus 187,500 square feet of supporting meeting space. Once construction begins, the entire project should take five to eight years to complete.

Many other projects intended for the same area on the North Strip sat idle for years, but the past 12 months have seen dramatic change. The $415 million SLS Las Vegas opened over Labor Day weekend last year on the site of the former Sahara Hotel. The 1,620-room "boutique" property consists of three towers of guest rooms, each promising a different ambience. The result of a collaboration among SBE founder Sam Nazarian, star chef José Andrés and design icon Philippe Starck, SLS became the first property to join Hilton's new Curio collection of high-end, independent hotels. It offers 80,000 square feet of event space, including a 9,000-square-foot ballroom.

The hotel's newest venue, the Foxtail Pool Club, debuted last month, providing 43,000 square feet of space for private cabanas, daybeds, deejays and 3-D projections for pool-party needs.

Meanwhile, on the site of Boyd Gaming's long-unfinished Echelon development, the Genting Group is expected to break ground this year on its $4 billion Resorts World Las Vegas. Construction of the massive resort should take two to three years. Phase one will include a 3,000-room hotel, a 100,000-square-foot casino, retail establishments and a showroom. Subsequent phases call for three more hotel towers, a 1 million-square-foot convention center, a theater, a water park, a movie theater and a bowling alley.

Construction began this winter, next to SLS Las Vegas, on the $1.4 billion All Net Resort and Arena, a privately funded complex set to open in 2017. The project includes a 860,000-square-foot, 22,000-seat arena with a retractable roof; a 300,000-square-foot pedestrian square called Victory Plaza; and a 500-room, 44-story boutique hotel and spa. There is speculation that the project, which is the vision of former University of Nevada, Las Vegas, and National Basketball Association star Jackie Robinson, is being constructed in part to lure an NBA franchise to Las Vegas.

Also on the North Strip, the site of the former New Frontier was purchased by a new company led by Australia's Crown Resorts and former Wynn president Andrew Pascal. They hope to build a megaresort on the 34.6-acre site that would open in 2018.

Elsewhere on Las Vegas Boulevard, MGM Resorts continues to work on The Park, a dining and entertainment district between the New York-New York and Monte Carlo resorts that will feature pedestrian pathways, restaurants and a plaza around the new 20,000-seat arena MGM is constructing in partnership with AEG. Both the arena and The Park are expected to open in 2016.

 

Notable openings from the past year include the Delano Las Vegas, a 1,117-suite property on the site of the former THEHotel adjoining Mandalay Bay. The new hotel's dramatic entryway features a 10-foot, 126,000-pound split boulder, setting the tone for the design transformation. Among the property's enhancements are a new java bar, 3940 Coffee + Tea; breakfast and lunch restaurant Della's Kitchen; and an elegant lobby bar called Franklin. The hotel features a spa with 13 treatment rooms and 20,000 square feet of meeting space, as well as easy access to the convention space inside the neighboring Mandalay Bay.

On the center Strip, the 2,253-room Linq Hotel + Casino debuted last November alongside The Linq outdoor plaza and promenade. The hotel is a rebranding of the Quad Resort & Casino, which itself was a rebranding of the Imperial Palace. The latest incarnation of the establishment features five new suites, a new lobby bar called 3535 and a new meetings venue, the Vortex Roof Deck. The hotel is now being positioned for the "socially active" traveler, offering easy access to the High Roller observation wheel and the retail and F&B establishments in the promenade.

Last month saw the debut of a new flagship nightclub in Caesars Palace called Omnia. The venue offers both indoor and outdoor facilities, including a nature-inspired landscaped deck overlooking the Strip. The 75,000-square-foot club is operated by the Hakkasan Group, which last year acquired The Light Group, operators of the spot's former club, Pure. The new venue is Hakkasan's first non-MGM club in Las Vegas. -- Michael J. Shapiro

NEW JERSEY

 

Atlantic City has had a rough run over the past year. Since January 2014, four big gaming resorts -- the 804-room Atlantic Club, 1,300-room Showboat Atlantic City, 906-room Trump Plaza Hotel & Casino and 1,400-room Revel Casino Hotel --have closed down. Only one, Revel, appears to have a chance to come back as a gaming property. Just days after the owners of the property had reached a deal to sell to Florida developer Glen Straub with a closing date of March 31, another potential buyer, Los Angeles developer Isek Shomof, came forward with an $80 million bid and more concessions. At press time, a final decision had not yet been determined.

In more positive news, Meet AC was launched last spring to develop the destination's meeting, convention and incentive business. The new nonprofit group was spun off from the Casino Reinvestment Development Authority and is headed by James Wood, former president and CEO of the Louisville (Ky.) Convention & Visitors Bureau.

Last month, billionaire Carl Icahn reached an agreement with Donald Trump to allow the Trump name to remain on the 2,010-room Trump Taj Mahal Casino. The casino is being acquired by Icahn, who is financing the property to keep it going through bankruptcy proceedings, filed last fall.

Icahn is acquiring Trump Entertainment Resorts by swapping its debt, which he owns, in return for ownership of the company. The agreement still must be approved by a federal bankruptcy court judge. (Trump Entertainment Resorts is a separate company from the Trump Organization; Donald Trump gave up chairmanship of the Entertainment Resorts group in 2009.)

In January, the New Jersey Casino Control Commission granted preliminary approval for Hard Rock, the hospitality brand owned by Florida's Seminole tribe, to own a casino in Atlantic City, pending further review.

Looking ahead, Atlantic City's remaining gaming properties are investing in upgrading their group offerings. Among recent news:

• Scheduled to debut in August, Harrah's Atlantic City Waterfront Conference Center will have some 125,000 square feet of meeting and event space. At present, parent venue Harrah's Resort Atlantic City has 10 meeting rooms totaling 25,000 square feet and 2,590-room guest rooms.

• The 2,133-room Tropicana Casino & Resort Atlantic City is undergoing a $35 million renovation. The project includes a refurbishment of the 434 guest rooms in the resort's north tower, the expansion of Fin's restaurant, and the addition of the AtlanticCare LifeCenter fitness facility and retail shops. Also under construction is a new Boardwalk facade that will feature an interactive light-and-sound show. The upgrades will debut by year's end.

• The 942-room Resorts Casino Hotel is expanding its meeting space. The project, scheduled for completion this summer, will add 12,000 square feet of event space, including 11 new conference rooms, to Atlantic City's oldest property. When the renovation is complete, Resorts will have more than 64,000 square feet of meeting and event space among 27 rooms.

"This expansion plan furthers the repositioning of Resorts as the company continues to make smart investments that will transform the property into a more vibrant, profitable destination with offerings beyond casino gambling," notes Mark Giannantonio, president and CEO of the property.

 • The Borgata Hotel, Casino & Spa, with 2,000 rooms, likewise is expanding its offerings for groups. The property will open an outdoor concert hall this summer and a new nightclub this fall, with $14 million in funding from the Casino Reinvestment Development Authority.

• At the 1,140-room Caesars Atlantic City, celebrity chef Gordon Ramsay's Pub & Grill has opened on the lobby level. The 250-seat eatery offers an authentic English pub experience, such as bangers and mash, and ale-battered fish and chips. Twenty-four HD TVs will showcase sporting events from across the world, throughout the year. -- Lisa A. Grimaldi

RENO/TAHOE

Fewer than half of visitors to the Reno/Tahoe region come strictly for gaming, according to the Reno-Sparks Convention and Visitors Authority. New developments in this longtime gambling town -- including a burgeoning restaurant scene -- give nongamers more reasons to visit. But gaming is still a draw -- the majority of visitors do hit the casinos while in town -- and many resorts have upgraded their gaming and group-friendly facilities. About 15,500 hotel rooms are available in this town, which has a population of less than a half-million.

 

The 1,635-room Peppermill Resort and Casino continues to upgrade its meeting facilities. All of the function space has received new carpeting, sconces and ceiling tiles in the past 12 months, and the prefunction space likewise has fresh carpet, tile and furniture.

The Tropicana Entertainment-owned MontBleu Resort is undergoing a $24 million renovation of its casino and 437 guest rooms, due to wrap up next month. Guest rooms at the Lake Tahoe property are getting upgrades to furniture, electronics, fixtures and bathrooms, while the casino and convention space will have new carpeting, lighting and décor. Work should soon be under way on the MontBleu Theater Showroom, box office and building exterior, a project slated to finish by the end of this year.  

Across the street, the former Horizon got a $60 million overhaul before reopening in late January as the Hard Rock Hotel & Casino. All 539 guest rooms and suites have been reworked to conform to the Hard Rock style, with music memorabilia and a rock 'n' roll theme. A 25,000-square-foot casino is on-site, along with more than 14,300 square feet of meeting space. New restaurants include the Oyster Bar and Fuel, while Vinyl offers an intimate performance space.

The historic Cal Neva Resort, Spa & Casino in North Lake Tahoe is under new ownership and is slated to reopen on Dec. 12, 2015 -- just in time to celebrate what would have been former owner Frank Sinatra's 100th birthday. The resort will offer 219 guest rooms, a spa, meeting space and restaurants. The new owners will reportedly spend $49 million to thoroughly refurbish the classic property.

The 1,500-room JA Nugget opened Gilley's Dance Hall, BBQ and Saloon last summer. The Sparks hotel continues its $50 million renovation, upgrading guest rooms, public areas and more.

Reno-Tahoe International Airport is welcoming new routes. Next month, JetBlue will begin offering daily nonstop flights between Reno and New York's JFK International Airport, the first direct service offered between Reno and the East Coast. The airport also recently launched direct service between Reno and Guadalajara, Mexico, and will add a London route by the end of the year. -- Michael J. Shapiro

PENNSYLVANIA

In November 2014, the Pennsylvania Gaming Control Board awarded its final standalone casino license to the Stadium Casino LLP project in South Philadelphia. The license, the last of five such official permissions to be granted in the state, was designated for Philadelphia. The other four casinos, in Bethlehem, Philadelphia, Pittsburgh and Wilkes-Barre, already are operating.

The Stadium Casino project is a joint venture between Greenwood Gaming and Entertainment, which also operates the Parx Casino in Bucks County (near Philadelphia), and the Cordish Companies, which operate the Maryland LIVE Casino near Annapolis, Md., and the Xfinity LIVE entertainment complex in Philadelphia. The board's decision was unanimous.

 

Stadium beat out three other finalists, including Tower Entertainment, which proposed the Provence project; Market East Associates, which backed the Market 8 Casino; and PHL Local Gaming LLC, which offered the Casino Revolution. All three of those applicants appealed the board's decision -- as did an existing Philadelphia casino, SugarHouse -- which means the courts now must decide whether or not to uphold the board's original decision. The appeals process had been expected, according to a Gaming Control Board spokesperson, who added that it would be impossible to predict a timeline for a decision and subsequent development.

The Gaming Control Board has now awarded a total of 13 licenses. In addition to the five standalone casinos, six are in operation at horse racetracks and two are being run at previously existing resorts. One more horse-track casino license will be awarded, and in two years the board may decide to issue another resort casino license. -- Michael J. Shapiro

NEW YORK

In January, the New York Gaming Commission announced three winning bidders (out of 16) for casino licenses in upstate New York. They include the Montreign Resort Casino in the Catskills town of Thompson, on the grounds of the former Concord Hotel. The $630 million project calls for an 18-story property, meeting space and an indoor water park. Its developer, Empire Resorts, operates through a subsidiary, the nearby Monticello Casino & Raceway.

Another license went to the Rivers Casino & Resort at Mohawk Harbor in Schenectady, near Albany, which will be part of a redevelopment of the city's riverfront. Plans call for a hotel, a high-end steak house and more than 1,100 slot machines, all to the tune of $300 million.

 

The final recipient was the Lago Resort & Casino, a $425 million property in the Finger Lakes-district town of Tyre, which will include 2,000 slots.

At press time, the gaming commission was conducting background investigations of the three winning bidders; timelines for building and opening of the new gaming resorts have not yet been announced. -- Lisa A. Grimaldi