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Tilt Pocker

December 18, 2008

Tilt pocker, Tropicana's die was probably play pocker cast prior to the current slowdown in the U.S. economy. In January 2007, Tropicana paid $2.1 billion in cash to buy out competitor Aztar. In hindsight, Tropicana paid top dollar and leveraged themselves at a time when credit markets were tight and would only get tighter. In December 2007, the New Jersey Casino Control Commission denied the licensing renewal for the Tropicana's Atlantic City property, citing the company's poor regulatory compliance track record. With reduced cash flow and unable to secure additional financing or refinance their debt, Tropicana Entertainment filed for protection from play pocker creditors under Chapter 11 earlier this month.

The prospect that MGM Mirage was going to post a rosy first-quarter play pocker profit waned when the company fired 400 mid-level managers in April as part of a $75 million cost-cutting move. Unlike Tropicana, however, MGM's issues appeared to be directly related to the slowing economy. "We were able to see the signs of trouble on the economic horizon last August," said MGM spokesman Alan Feldman said. "The economy was beginning to worsen and clearly was not going to get better in the immediate term. Instead of four days, people stay for three.

Instead of a five-star experience, they are going for four pocker stars. Instead of two shows, they're going to one. There certainly is the possibility that there are people who are also making a decision to gamble less." Before MGM posted its earnings, many other casino companies had already weighed in with disappointing news. Trump Entertainment's losses widened in the first quarter.

Ameristar Casinos, which reported a gain in the first quarter of 2007, came up $60.9 million short in the first quarter of 2008, primarily driven by a large writedown on the value of a pocker casino it bought last year in Indiana, and the citing of a slowing U.S. economy. Wynn Resorts saw its profits drop by 20%. Las Vegas Sands lost $11.8 million on the quarter, after posting a gain of $90.9 million just a year ago. And Boyd Gaming lost $32.6 million this quarter, compared to the $217.9 million profit they raked in last year. MGM Mirage Chairman and CEO Terry Lanni started the company's first-quarter earnings conference call by saying, "The first quarter was obviously challenging. It was clearly impacted by the economy.

It's relatively difficult for us to forecast trends into the next few quarters, but so far in the second quarter we are seeing much of the same as it relates to customer volumes and our job is to manage within the context to maximize profitability in what will surely be a rather challenging year." MGM went on to announce a 30% drop in profit on the quarter, posting a $118.3 million gain, down from $168.2 million a year ago. Lanni went on to say that if the trend in higher valuations for hotel versus casino properties continued, that MGM might consider splitting off parts of the company to maximize shareholder value. I was visiting my Dad and his wife Mary in Lake Placid, Florida. If you were to try and find "the middle of nowhere" in Florida, this is about as close as you could come. It is a great place to retire, I suppose, with lots of golfing and fishing nearby. If you're looking for relaxation and quiet – placidity – this is the place for you. It is not, however, a great place for younger people looking for less sedentary or evening activity. Unlike either coast of Florida, there really is no urban environment or culture of any kind. There are few good restaurants, no exciting ones, no late-night eateries, coffee houses, nightclubs, or places with music. There aren't even any nearby movie theaters or bookstores. Orange groves? Biker bars? Cattle grazing? That they have. But little else.