December 22, 2004
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INSIDE GAMING: Faster than the down of a thistle
Happy holidays for MGM Mirage. Approval is likely before month’s end from the Federal Trade Commission for the $7.9 billion MGM Mirage buyout of Mandalay Resort Group, sources following the deal closely say. Approval from the states in which the companies operate is still needed, and final financing will have to be in place before the merger is consummated. Nevertheless, antitrust experts are impressed with the speed with which MGM Mirage executives have jumped through federal hoops, and the company says it remains confident the deal will close before the end of 2005′s first quarter.
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Casino operators say they’re frothing for added poker players. It’s not because poker generates profits directly, but because heightened interest in the game is luring hipper customers. Poker tables themselves generate only about $65 an hour in daily revenue, but with their sights set on a younger generation hooked by television coverage, Caesars Palace and MGM Grand are both set to reopen their poker rooms in March after long absences — 12 years at Caesars. Bellagio and Bally’s are also talking about poker-room expansions.
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Industry leaders are peeved about this column’s focus last week on gaming foes and their plans to slow proliferation. Casino owners say the spread of gaming will accelerate next year, especially in California, where Gov. Arnold Schwarzenegger is still grasping at straws to balance his budget. Disorganized opposition — with American Indians fighting with the state and each other — means the governor is holding a winning hand for maximizing revenues from casinos, thus expanding operations.
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Casino operators are also paying particular heed to big states back east. Massachusetts, where slot legislation is expected to resurface next year, seems like their prime target. Although past efforts have flopped, budget concerns and competition from expanded gaming in Connecticut, possible slots at tracks in Maine and the chances for slots in Rhode Island are propelling legislation forward. New York and Pennsylvania are also prime candidates for expanded gaming operations.
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What’s in a name? Two Las Vegas gaming manufacturers changed their names so they have ticker symbols nearly identical to each another. Paul-Son Gaming, which makes casino chips, dice and the like, is now Gaming Partners International Corp. and trades as GPIC. Mikohn Gaming, a slot-machine maker, changed its name to Progressive Gaming International Corp. and starts trading as PGIC in January. Could they be more confusing?
The Inside Gaming column is compiled by Gaming Wire Editor Rod Smith. You can contact him by phone at (702) 477-3893, fax (702) 387-5243 or e-mail at rsmith@reviewjournal.com.
