While spending time in Las Vegas for the 2016 World Series of Poker, I looked out the window of my 46 floor Las Vegas Blvd hotel room and noticed something. Las Vegas was getting smaller. Not in any way that can be measured by a county surveyor but in the way measured by market place competitiveness. The competition for Las Vegas’ 25 million tourist and conventioneers is consolidating, and we are already seeing changes in the ways that resorts are operating. So let’s take a closer look at what’s been happening and identify some of the inevitable outcomes.
Boyd Gaming casinos are primarily a locals’ market casinos, with all nine of their Las Vegas properties located off the strip or in downtown Las Vegas on Freemont Street. Their flagship property is The Orleans located on Tropicana Ave, approximately a half mile west of Las Vegas Blvd. The Orleans is not aesthetically pleasing, even when using the most liberal mind. The carpets are worn and the lighting is dim. But what The Orleans lacks in visual appeal it more than makes up for in player appreciation.
Losing as little as possible should be the primary objective for any recreational or professional gambler. Even the premier advantage gaming authority James Grosjean will back me up on this. The games available at The Orleans have a minimal house advantage. This prolongs the playing time for the customer.
Many casinos in Las Vegas and all over the world have set up their table games so they have an overwhelming advantage, and this siphons dollars from the players at an obscene rate. For slot players this also rings true. Some gaming companies, both online and land based, give better value to their players than others on their slot games. There are even online discussion groups where players can weigh the pros and cons of various slot games. What they conclude is: by slowing the rate at which a player loses money (aka Burn Rate) to the casino, value is increased for the player. In gaming management circles this is known as extending time on device.
Another great thing about The Orleans, and Boyd properties in general, is if you have a decent average bet (around 35-50 dollars per hand at table games) you can pretty much get anything you want from the pit bosses. You would like a free room, no problem Mr. Smith. You want 2 tickets to the concert tonight, here you go. Dinner for 2 at the steak house Mr. Smith, I’ll write the comp for you right now.
The Aliante Casino Resort in North Las Vegas and the 2 Cannery properties in Las Vegas north-west region were all purchased by Boyd gaming this year. These three properties are all known for player centric management styles, so it is a natural fit to incorporate them into the Boyd Gaming family of properties.
The Aliante in North Las Vegas gives Boyd Gaming a presence in that outer borough. When it was built in the early 2000s it was intended to provide an anchor for that town. Much like Green Valley Ranch did for the community of Henderson. Similarly, the two Cannery properties fill a void for Boyd Gaming in that sector of Las Vegas where they have no properties. When the sales are finalized, Boyd Gaming will have a total of 12 properties in Southern Nevada, making it a major player in the Las Vegas market.
The Station Casinos conglomerate is another locals’ market casino and it operates one the wider selections of resorts in Las Vegas. There are currently 10 different hotels and casino properties with a combined room count totaling over 4,000. Most of their properties are off the strip and feature rooms for every taste, style and budget. Whether you’re looking for a luxury suite with mountain views, or just a comfortable bed that has an affordable room rate and is just off the Las Vegas Strip, they can accommodate you. And let us not forget that the Palace Station just west of the strip on Sahara Ave is the hotel where OJ Simpson was arrested for armed robbery.
Like any resort in Las Vegas, the Station Properties have a decent selection of entertainment options that range from the very best rock, country, blues and jazz concerts to nightclubs and lounges, friendly bars and professional comedy acts. The family friendly hotels are equipped to entertain kids as well. Many of their properties have on-site movie theaters, bowling centers, arcades, and supervised child care centers. With all this to offer, the best feature in my opinion is the Station Properties food bargains. Easily the best value in town, their buffets have exceptional quality at reasonable prices. The Green Valley Ranch and Red Rock Buffets are particularly noteworthy.
Recently, The Station Properties conglomerate made a bid on the Palms Casino Resort on Flamingo Blvd just off the Las Vegas Strip for 312.5 million dollars . The offer was accepted and the deal was made possible after the conglomerate was able to raise money through an initial public offering of the newly formed Red Rock Resorts Inc (formerly Station Casinos).
The acquisition keeps the off the strip theme of the organization, and will give the corporation access to a new younger market that the Palms is known for. The two high profile night clubs on the top floors of the Palms will be a welcome addition to Red Rock Resorts Inc, as they have yet to hit a home run in this arena. Some adjustments will have to be made though. The Palms is not known for their bargain value buffets, but I’m sure that will change in the next few months as the new management takes over the reins.
These sales are awaiting final approval by the FTC. Las Vegas has several organizations that own multiple casinos. So I don’t see any reason why the investigation would not lead to the prompt ratification of these purchases. The competition between casinos in Las Vegas is still pretty hefty. Anthony Curtis, publisher of the Las Vegas Advisor website says that: “As fewer and fewer organizations own more and more of the casinos in Las Vegas, we can expect to see fewer benefits for the player, but that won’t happen for a while.” So for now at least, things will not be changing too much.