Latest rumors

As I promised on Friday, the Las Vegas Business Press ran an article today about the immiment demise of a Strip mainstray. Check out Strip Tease to learn more.

Don’t expect too many posts from me this week–I’m heading to the East Coast to do some research and meet with my editor at Gotham Books. Roll the Bones is almost out of my hands. I’ve finished selecting pictures (though I’m still looking for a photo of Nick the Greek Dandalos) and am just starting the Herculean task of adding descriptors to my endnotes–there won’t be any superscript references in the published version. After I’m done all that, I think I just have to correct any mistakes in the proofs. There’s probably a few things I’ve left out, though.

I’ve also got a tentative plan for my next academic book project, but I’m still working out some of the details. So it’s been a busy time here.

Happy New Year!

In Las Vegas, it’s New Years all right…Chinese New Year. I’ve often said that casinos are in the forefront of commerce-driven multi-culturalism, and this is yet another example: Strip resorts are proclaiming, at considerably expense, their jubilation at the advent of the Year of the Dog. From the LV Sun:

Marketing to Asian — particularly Chinese — gamblers is Management 101 for casino bosses. Just about anybody who works in a casino knows that many Chinese believe the color red and the number 8 are lucky and that the number 4 is unlucky.

Many Las Vegas Strip properties have decorated their lobbies and casinos with orange trees, red lanterns, gold coins and other Chinese symbols of luck and prosperity.

Caesars Palace’s top executive will be on hand Feb. 4 for a traditional “painting of the eye” lion ceremony in front of the property. The Venetian will host a dragon dance, complete with firecrackers and traditional music, in its casino on Saturday. At the MGM Grand Garden Arena, Chinese singer Paula Tsui will perform in Mandarin and Cantonese on Saturday and Sunday.

For non-Chinese, the public displays are an intriguing and colorful nod to an important ethnic group. For Las Vegas casinos, it’s a business imperative.

Chinese New Year, also known as Lunar New Year, has grown from a small, private welcome for Asian high rollers to a more mainstream event for middle-income Chinese and Asian-Americans.

It now ranks as one of the biggest gambling events of the year for Las Vegas, vying for second place with the Super Bowl, behind New Year’s Eve, experts say. Hotels are expecting 100 percent occupancy this weekend in advance of the celebration, which begins Sunday and lasts for two weeks.

A Chinese propensity to gamble is a long-held truism in Las Vegas that has yet to be documented with any accuracy. But some say there is a cultural basis for gambling during Chinese New Year — a holiday that is inextricably tied to testing one’s luck.

If a person wins a wager, it could bring new luck for the rest of the year, or so the tradition goes. Losing a bet could rid the bettor of bad luck that’s accumulated over the past year.
Las Vegas SUN: Casinos open arms for Asians with open wallets

I like how winning a bet is good luck, but losing is good luck as well. It’s very optimistic.

The rest of the story is very good, so click on through.

Just so I’m not left out, I’d like to extend my warm wishes for a lucky and healthy New Year to everyone:
Happy New Year!

Here’s a hot tip: check out the “Strip Tease” column in Monday’s Business Press. There will be an item about the impending demise of a storied Strip resort.

Betting on the Big Game

According to the Detroit News, betting on the Super Bowl will be big business:

An estimated 60 million people will bet $6 billion on the Super Bowl this year.

But not a single wager will be made at a casino in Detroit or Windsor.

Sports betting is illegal in Michigan, while Casino Windsor isn’t licensed for it.

That’s not to say Metro Detroit residents won’t be betting on the game. They’ll just be doing so in ways that are somewhat less than legal.

People will illegally join betting pools in homes, offices or bars. They’ll break the law by betting with friends, neighbors and friendly neighborhood bookies.

The criminals aren’t limited to southeast Michigan. The Super Bowl is the high holy day of the $200 billion sports gambling industry, said experts and regulators.

Big Game, Big bets – 01/22/06 – The Detroit News

I got quoted in the story, but I’m not totally sure where the figure of $200 billion a year in illegal bets comes from. I get questions about how much money is bet illegally all the time, but don’t know of any real source for the numbers.

In other news, according to a recent report illegal slots cost Maryland $15 million a year. I’m going to try to get the report for the center, and when I do maybe I’ll have some more answers.

I haven’t posted this week because I’ve been consumed with two projects: the relaunch of gaming.unlv.edu and getting photos for Roll the Bones.

The web stuff is coming along, and I’m close to finding the final images for the book.

Peanut comeback–it’s all good

If you listened to Dave Berns interview me on KNPR, you heard my shocking revelation that I used to work as Mr. Peanut. Actually, it’s not that shocking, but “shocking revelation” sounds better than “talking about a past summer job.” So you can imagine my excitement at reading this article in the Atlantic City Press:
Mr. Peanut – and his signature snack – are making a comeback.

During the lean years of the Great Depression, a 5-cent bag of roasted peanuts was known as “The Nickel Lunch.”

In 2006, with Americans eating low-carb, high-protein foods, domestic peanut consumption has risen to all-time highs.

And in celebration of the 100th anniversary of Planters Peanuts, the promotional icon Mr. Peanut, born in 1916 and beckoning to Atlantic City Boardwalk visitors for generations, will make a permanent return to the Jersey Shore this summer – as a statue.

The top hat-doffing, spats-sporting, monocled legume will be enshrined in bronze in July at Kennedy Plaza near Boardwalk Hall, Planters officials said. It’s part of a year of celebrations for the company and its corporate dandy, including a nationwide tour in a bright yellow Nut-Mobile and an online contest to add a new accouterment – cuff links? a pocket watch? – to Mr. Peanut’s ensemble.

“There is a really deep connection to Atlantic City for both Planters and Mr. Peanut,” said Heath Osburn, senior brand manager for Planters. “You can’t help but find someone from the Northeast who … will tell you, ‘When we’d go down to the shore, we’d go to the Boardwalk and we’d always see Mr. Peanut.’”

That’s because for much of the 20th century – certainly in the pre-television era – the place to reach a mass audience of would-be consumers was in locales such as Manhattan’s Times Square and along the Boardwalk.

According to the Atlantic City Historical Museum, the seaside resort was home to Underwood’s “World’s Largest Typewriter,” a 12-foot tall rubber Goodyear tire, and thousands of light bulbs flashing out the good news about razor blades, corsets and cigarettes.

Planters was founded by Amedeo Obici, an Italian immigrant who sold peanuts from his uncle’s fruit stand in Wilkes Barre, Pa. In 1896, the 19-year-old entrepreneur built a crude peanut roaster, peddling his wares by horse and wagon. Within a decade he established the Planters Nut Company. His business kept growing, and in 1913 Obici built a mass processing plant in Suffolk, Va. Three years later the Mr. Peanut icon was born of a drawing a school child submitted to the company.

In 1930, the company opened a shop on the Atlantic City Boardwalk, with the aroma of freshly roasted nuts wafting in the sea breeze.

“That was a beautiful store,” recalled Herb Stern, vice chairman of the historical museum. “You could smell it on the Boardwalk a block away.

“Outside there was a man dressed up in the peanut costume,” Stern recalled. “He’d give out little samples. They were supposed to be for adults, but kids always snuck by. If you were lucky, you could sneak by two or three times.”

The store and Mr. Peanut flourished in Atlantic City even after the company sold off its other 100-plus shops across the nation, recalled Leo Yeager III, who worked in the store in front of the Steel Pier through the 1960s.

“It took up about half a block,” said Yeager, who now runs his own Boardwalk Peanuts in three local casinos, and on the Ocean City Boardwalk. “There were seven peanut roasters in the window. It was really unique because preparation was done right in front of the public.”

The final decades of the century were not as kind to Mr. Peanut, however. Heightened awareness of food allergies and fad diets banishing all but the lowest fat foods pushed nuts out of many Americans’ meals. The Atlantic City shop closed in the mid-1970s.

Now part of Chicago-based Kraft Food Inc., Planters is headquartered in East Hanover Township, Morris County.
Atlantic City icon Mr. Peanut returning to Shore
What the article doesn’t mention is that Leo Yeager revived Mr. Peanut in the early 1990s at his Tropicana store. I worked for Leo in that role for a memorable summer.

Probably the dumbest thing to happen to me was when a local reporter tried to interview me–in character. Of course, I didn’t have too much of an iidea of what Mr. Peanut’s backstory was–Leo just gave me the shell and white gloves and told me to buy black pants and shoes–so mostly I waved and twirled my cane. The reporter ended up making up a bunch of stuff, which I guess played better in print.

I never gave out samples, and my job was mostly to stand there, wave, vaguely gesture towards the store, pose for pictures, and try to avoid getting blasted in the package by rambunctious kids. Good training for my current job, I guess.

Asian problem gambling

The LA Times’s John Glionna has a very good piece on Asian problem gambling. There is a lot of anecdotal evidence of this phenomenon, and it looks like UCLA is doing some serious research into it.

Here’s a bit of the story from the LA Times (register to read the whole article):

Bill Lee’s father was sold as a boy to cover a gambling debt.

In the early 1900s, Lee’s grandfather lost a wager during a gambling binge in China. With no money to settle up, his only son had to go.

The failed bet unloosed a legacy of problem gambling for Lee’s family. His father became an obsessive gambler who never mentioned being raised by a man who won him in a card game. “I saw how gambling destroyed my dad,” Lee said. “Part of me also learned, ‘Oh, that’s how you deal with conflict; that’s how you escape.’ ”

Nobody really knows how deeply problem gambling reaches into Asian communities because Asians have not been broken out as a group in national or California studies on the issue.

But a 1999 poll in San Francisco’s Chinatown, commissioned by a social services agency, found that 70% of 1,808 respondents ranked gambling as their community’s No. 1 problem. In a follow-up poll, 21% of respondents considered themselves pathological gamblers and 16% more called themselves problem gamblers — rates significantly higher than in the overall population.

Current data suggest that 1.6% of Americans can be classified as pathological gamblers, a condition recognized as a psychiatric disorder. About 3% more are considered problem gamblers.

Gambling has become America’s adult pastime of choice. Each year, more money is spent in the nation’s $75-billion gaming industry than on movies, concerts, sporting events and amusement parks combined.

And nowhere is gambling on a bigger roll than in California, with nearly 60 Indian casinos, scores of card rooms, racetracks and Internet gambling sites as well as one of the nation’s most lucrative state lotteries. By 2010, annual gaming proceeds will top $10 billion dollars, carrying California past Nevada as the No. 1 gambling destination in the world, gaming experts say.

Asian gamblers play a key role in that success. Though few statistics on their contribution to the state’s gambling pot exist, some casinos and card rooms near Los Angeles and San Francisco estimate that Asians often account for 80% of their customers.

Gambling Seen as No-Win Situation for Some Asians – Los Angeles Times

It’s definitely interesting reading.

Not so smokin’

New Jersey recently banned smoking indoors–unless you’re in a casino. Proponents of the ban have said that it was a political move–they could not have gotten the measure passed with the combined clout of casinos, bars, and restaurants. So they picked off the bars and restaurants, and have now come for the casinos.

From Newsday:

The measure would expand the Smoke-Free Air Act that former Gov. Richard J. Codey signed into law Sunday, making New Jersey the 11th state to impose a smoking ban.

The law bars smoking from restaurants, bars and most indoor public buildings, but exempts gambling areas in Atlantic City casinos, tobacco retailers and cigar bars. It will take effect April 15.

The anti-smoking extension is the first bill to be sponsored by new Assemblyman Jim Whelan, an Atlantic City Democrat.

“It’s very simple. You treat everyone the same,” said Whelan, a former Atlantic City mayor. “We have a law right now that doesn’t treat everyone the same.”

Sen. Shirley Turner, a Democrat from Lawrence who is co-sponsoring the Senate bill, said, “it’s a horrible message to say it’s OK for casino moguls to poison the lungs of their workers with secondhand smoke because they have the political clout to buy a deadly exemption.”

Opponents of the new ban, including bar and restaurant owners, argued that allowing patrons to smoke in their establishments is crucial to business and that the exemption gives Atlantic City casinos an unfair advantage.

AC lawmaker moves to extend indoor smoking ban to casino floors — Newsday.com

Turner makes a good point, but the grammar police might argue that she is suggesting that the employees are the ones who have an exemption.

Poison might not be so far off the mark–there’s nothing like coming home after a tough shift and noting that your clothes are redolent with the odor of a known carcinogen.

I’ve been doing research in old copies of Fablulous Las Vegas, a weekly that touted the wonders of Vegas tourism back in the day. I stumbled across a crotchety editorial that bemoaned the do-gooders who had enacted a ban against smoking inside movie theaters. After all, smokers could sit still for three hours without lighting up, and taking a smoke break would cause them to miss the onscreen action.

It made me think, and I don’t think I can remember a time when people smoked in theaters. So I guess we got used to it.

On the other hand, even flying shrimp are apparently deadly, so where do you draw the line?

Interviewed

If you like, you can listen to me being interviewed by Dave Berns on KNPR’s State of Nevada. Just click the link and listen away. Doing the interview was a lot of fun.

Winds of reform

Running a clandestine casino requires a lot of stealth–you need to get the word out, but not tip off the cops. You need to account for large amounts of people coming and going. You also, apparently, need to lock your door. From the AP:

Sheriff’s deputies found what appeared to be a small casino when they responded to a burglar alarm at the home of a former small town mayor who had served time in prison for an illegal gambling scheme, officials said.

The door was wide open when deputies arrived late Sunday at the upscale mountain home owned by Peter Werrlein, a former councilman and mayor in the city of Bell in suburban Los Angeles, said San Bernardino Sheriff’s Detective James Bergandahl.

Deputies entered the house and found a 1,200-square-foot room containing seven slot machines, a mini roulette wheel, mini craps table, blackjack and poker tables, buckets of coins and several poker chips, Bergandahl said. There also was a cashier’s cage and a posted “No Credit” sign.

“It looked like an illegal casino or gambling hall,” Bergandahl said.

Nobody was home and there was no sign of forced entry, he said, adding that authorities believe strong winds blew open the door.

SoCal authorities find apparent casino in home of former mayor

I think that Werrlein could argue it was his personal rec room “for entertainment only.” The “no credit” sign was just part of the ambiance.

Maybe I should call the local cops every time someone calls me and wants to buy casino carpet for their basement “play room.”

Away team gambling?

According to Star Trek, gambling will be a big part of the future. I’m a casual Star Trek fan at best, but I seem to remember that the senior officers in The Next Generation played poker together, and that the Ferengi guy on Deep Space Nine had a casino.

It looks like Trekkies will be able to digitally double down a lot sooner than the 25th century. At least that’s what I took away from this Business Press article by David McKee:

Local manufacturer Shuffle Master has inked a strategic alliance with Sona Mobile Holdings. Under the terms of the pact, Sona is to develop a wireless system for delivery of Shuffle Master game products.

The Shuffle Master/Sona products are intended for use within casino properties, thereby complying with Nevada’s recent legalization of on-site, portable gambling.

Shuffle Master markets a number of live table games in addition to a pair of electronic ones, Rapid Roulette and Table Master. Its core business centers on a variety of table-management tools, including shufflers, chip sorters, RFID-chip technology and drop boxes. Sona sells handheld devices — including a Star Trek communicator phone — that can be gaming-enabled, using wi-fi technology that the company says can be restricted to public areas, as determined by the casino.

Under the wireless-gambling regulations currently being finalized by the Nevada Gaming Control Board, on-site mobile gambling would be conducted only on machines owned and issued by the participating casinos, the target market for Sona and its new partner.

Las Vegas Business Press

Of course, I’m just connecting the dots there, but it makes sense: Sona makes Star Trek communicators, and they offer mobile gambling, so why not join the two.

Just think of the fun you could have narrating your gambling exploits in a Shatner-esque voice:

Captain’s log, stardate 89154.7010. I’ve gone all in with a pair of kings, and busted out when Lt. Sulu had pocket aces. It was a bad beat.

Note to trekkies: I know that 89154 probably isn’t a real star date–it’s just my work zip code, which was the first number I could think of.

Who’s next…

…to go on the Strip? According to Liz Benston at the Sun, the Riviera might not be such a bad bet:

A group of experienced real estate developers has reached an agreement with the chief executive of the company that owns the Riviera to buy out his shares of stock in the casino’s parent company — a deal experts say will allow the group to eventually take over the company and redevelop the aging Las Vegas property.

Riviera Holdings Corp., which owns the Riviera on the Strip and the Riviera Black Hawk in Colorado, has been subject to numerous buyout offers and other redevelopment proposals over the years, none of which came to fruition.

Some experts say the purchase agreement is different than the past deals because it is led by a group capable of financing the purchase and redevelopment of a major Strip resort, whereas previous groups did not have the expertise or ability to finance a makeover that could cost more than a billion dollars. The deal was made public in a Securities and Exchange Commission filing.

The group purchasing Riviera shares includes Barry Sternlicht, the former chief executive of Starwood Hotels and Resorts Worldwide, Las Vegas real estate developer Brett Torino and Chicago real estate executive and casino investor Neil Bluhm. Torino and Bluhm declined to comment further on the agreement, and Sternlicht could not be reached for comment by press time.

Riviera officials, including Chief Executive Bill Westerman, also declined comment.
Las Vegas SUN: Rebirth of the Riviera?

Then again, you might want to look at the other end of the Strip. David McKee at the Business Press says the Klondike’s days are numbered:

For 45 years, the Klondike Hotel & Casino has stood at the southernmost edge of the Las Vegas Strip. But instead of embodying history it may soon be history.

Last September, the land under the Klondike was purchased by Royal Palm Las Vegas, a subsidiary of Boca Raton, Fla.-based condominium developer Royal Palm Communities. Royal Palm intends to build a condo-hotel casino resort of 1,000 to 1,600 units on the site and on land immediately to the north, adjacent to McCarran International Airport. Potential construction on those 10.6 acres is height-restricted at 20 to 25 stories and zoned for a maximum of 1,800 units, according to Royal Palm CEO Daniel Kodsi.

“Like anything else, progress takes its toll, my friend,” said Klondike owner John Woodrum, who has run the grind joint for decades. “You can only stand in the way of it so long and it rolls over you.”Woodrum hasn’t made any announcement yet. “When I have a fixed time that I’ll be leaving, then I’ll let everyone know. That could be as much as two years down the road.”

Klondike living on borrowed time

A trip down to the Klondike is worth it if you can get to talk with John Woodrum, who’s got more great stories about “old Vegas” than almost anyone I know.

In “related” news, a Business Press article on the Related Companies’ two big misses in Vegas contains an interesting note about condo pricing:

“We’re quoting $400 per square foot for condos based on the design and pricing from local subs,” said Dick Rizzo, chairman of Perini Building Co. “The general rule of thumb is that sale prices will have to be double that amount or more in order for the project to be profitable, which means prices of $800 to $1,200 per square foot.”

So a 700-sq. ft. 1-bedroom costs a cool $840,000. That’s a pretty small 1-bedroom, too. But it’s probably got a great view and is convenient to Strip traffic.