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Casino News on Thursday, January 25, 2007

Station Casino Management Make Buy Out Offer

Station Casinos announced yesterday that it had received a buy-out bid of $82/share or $5.15 billion on December 2nd from its chairman and CEO, Frank Fertitta. The bidding investment group, Fertitta Colony Partners LLC, includes Frank Fertitta, his brother Lorenzo, president of Stations, and Colony Capital LLC. Additionally Delise Sartini (Fertitta's sister) and her husband Blake, former Station Casino CEO, have also provided equity funding for the bid. Station Casinos has appointed a committee of independent directors to evaluate the deal. The offer represents a 19% premium above Station's stock price on Friday. Station Casino stock was already trading up 17% this morning on the announcement. Publicly traded casino companies

are hot commodities these days. Previously unrecognized by Wall Street for their real estate valuation and great cash flow potential, casino properties have recently struck a chord with private equity firms. In October, Harrah's Entertainment received a $15.5 billion bid from two private equity firms representing a record breaking offer in the industry's history. Kirk Kerkorian's investment company Tracinda Corporation recently divested its long standing position in General Motors to up its majority ownership of MGM Mirage to 61.1 percent. While Tracinda has not made any formal statement about taking MGM private, the investment community is speculating that may be the case. The Station Casinos offer, however, puts a bit of a twist on current the casino buy-out trend. While many understand the motivation for management to potentially take the company private, avoiding the constant pressure of Wall Street expectations, a management-led buy-out introduces any number of conflict of interest issues. But unlike the Harrah's offer, where the private equity acquirers face many new regulatory hurdles, both the Fertitta family and Colony Capital are old hands at the gaming regulatory hoop. Although a private equity firm, Colony Capital has successfully acquired a number of casino operators and properties, including Harveys Casino Resorts, Resorts International AC, the Las Vegas Hilton and a number of Harrah's properties. While it is uncertain whether Fertitta's bid will pass the scrutiny of Station's advisory committee, the bid will clearly heat up the already hot rumors relative to other casino property buy-outs.


Casino News on Friday, January 12, 2007

Poker and British Law

Currently a trial is taking place about whether the Gut Shot Club in Clerkenwell is breaking the law by spreading poker and charging the players.

It partly hinges on whether poker is a game of chance and gambling or a game of skill. There is little doubt it is all of these. Poker is clearly a game of great skill. But in the short term there is a considerable luck element. The prosecutor is talking nonsense when he states that shuffling the cards means therefore the game is one of chance. Bridge would be regarded as gambling under this criterion and that battle was won over 20 years ago.

Winning poker players do not want the court to rule that poker is solely a game of skill. If that were the conclusion, players would eventually become subject to tax on their winnings. That would be a disaster.

The truth is that poker is unlike other casino games and it should not be lumped together with roulette, slot machines, craps or punto banco. Professionals should want the game to be regulated intelligently by the government - but not as an uneasy bedfellow with the casino games.


Casino News on Thursday, January 11, 2007

Friday Nite on the Strip, Part III: Wynn, Venetian and Paris

I began this Friday night on the East Side of Las Vegas Boulevard in the high rent district. The plan was to park at the Wynn and stroll down the Strip to The Venetian and Paris. After some ring game play, I would reverse course and catch the rooms again in the midnight hour. I want to say something here about 'the best laid plans on a Friday night in Las Vegas' but what happens in Vegas often gets forgotten in Vegas.

At 7 PM the poker room at the Wynn was already hopping. There were eight no-limit tables in action with blinds from $1/$3 up to $10/$20 and the interest list for the $25/$50 NL game was getting close to a full table. Limit tables ran from $4/$8 to $30/$60 and the $60/$120 games was beginning to draw signups. One of the standard games at The Wynn is a $10/$20 Omaha8 and it was full with a short wait list. By far the longest wait list was for the $30/$60 mixed game, I watched that game for awhile and confirmed the rumors that "gamble" was the operative word in this mix. Resisting temptation to join the line of players taking seats, I moved out through the Winter Wonderland that is the Wynn's holiday entrance to the crisp Las Vegas evening full of tourists and poker seekers.

A brisk walk south down the 'Las Vegas Construction Zone' that is the central Strip these days takes us to the Venetian and its new poker room. If you have ever enjoyed the décor or space or ambience of a poker room then image all of these great qualities in one room. Nine tables of NLHE were in play by 8 PM, evenly spread among $1/$2, $2/$5 and $5/$10. Plenty of $4/$8 limit games were going but the only other interest list was for $40/$80 limit. There seems to be gap in the player pool at the Venetian; the mid-limit games are simply missing and the big Stud game was not to be found. Perhaps it was just too early for the Canal Walk players to be hitting the felt. Maybe later?

Another long Las Vegas Boulevard block brings me to Paris and a room in transition. Right now the poker space at Paris is out in the middle of the casino floor. However, as with so many rooms there is a new space in the near future. Paris should have its new room operational within 60 days. For now the room is nearly full but not with ring games. Paris has the most interesting tournament schedule in all of Las Vegas; here they run a NLHE event every two hours. Yes, there are 12 tournaments a day in Paris, actually 13 with the daily 7 PM Omaha event. NLHE tournaments begin on the "odd half hour" at 1:30, 3:30, 5:30, 7:30, 9:30, 11:30 -- take two drinks and repeat. So there is always a tournament going and the ring games are full of players who have busted from that tournament or who are waiting for the next one. Tonight this was exactly the case with the 7 PM tournament down to three tables and the 9 PM just about to start and closing all of the cash games as the players took their tournament seats. Wait two hours and repeat.

And wouldn't you know it; there was a seat open in that 9 PM Paris tournament. So after my kings were not liberated and my time in Paris was drawn out; I made my way back north to Venetian where the action had picked up but still low limit with the $40/$80 game still looking for a few more players. The Wynn was buzzing at midnight, both high and low limit were full and the mixed game had grown to two tables.

Was this the end of another Friday night on the Strip? Play or call it a night? Play or call it a night? Oh look, is that the sun coming up?