March 2009 Archives

City Center, the $8.6 billion Las Vegas development owned by MGM Mirage and DubaiWorld, is preparing for a potential bankruptcy filing that could bring the massive project to a halt, according to people familiar with the situation.

MGM Mirage and investment partner Dubai World appear unlikely to make a $220 million payment due Friday on City Center -- a massive resort and casino project under construction on 67 acres. City Center has hired Dewey & LeBoeuf to prepare itself for a possible bankruptcy filing, and the firm's Martin Bienenstock, a noted bankruptcy attorney, is handling the work, according to people familiar with matter. The law firm of Weil, Gotshal & Manges LLP is working for MGM Mirage on a range of legal issues, according to these people.

A filing could come this weekend, depending on talks among MGM Mirage, its lenders and Dubai World, these people said. There is a possibility that any filing for court-protection could be averted if the talks lead to an agreement.

Dubai World, a conglomerate owned by the government of Dubai, has sued MGM Mirage for breach of contract and blamed it for cost overruns. It also signaled it won't provide its half of Friday's payment. MGM Mirage, meanwhile, is struggling to persuade its reluctant lenders to allow it to solely fund the project. While talks between MGM Mirage and Dubai World were ongoing Thursday night, there "may be no choice" but for City Center to file bankruptcy "if Dubai World doesn't fund," said a person close to MGM Mirage.

The casino company faces a cash crunch as it tries to meet obligations on more than $13 billion in debt. The company narrowly averted defaulting on loans last week and warned that it could default by mid-May.

City Center's troubles could spill out across Las Vegas. The project is a stark example of how excesses spawned during a lengthy gambling boom are coming back to haunt the casino industry. The project is so large that thousands of workers depend on it for jobs. At the same time, it has the rest of the city's casino industry on edge. If it gets built, it would add thousands of high-end hotel rooms that would cannibalize business from the city's gambling tables and hotels.

Missing Friday's payment would start the clock ticking on City Center's future. Work could grind to a halt within days, idling 8,500 construction jobs, said a person familiar with the talks between MGM Mirage and Dubai World. A delayed opening would also risk the jobs of 12,000 workers who are to staff the complex.

A shutdown of City Center "would be devastating to the southern Nevada economy," said Steve Ross, secretary-treasurer of the Southern Nevada Building and Construction Trades Council, which represents 22,000 construction workers.

Las Vegas, a city known for its elaborate multibillion-dollar resorts, is already reeling. Echelon, a $4.8 billion resort project on the Las Vegas Strip, was shuttered last year after its parent, Boyd Gaming Corp., and partner Morgans Hotel Group struggled to finance the project. A Las Vegas Sands Corp. condo tower sits unfinished after the casino operator decided to concentrate on finishing other projects. Several projects were canceled before work even started.

Las Vegas has suffered as tourism revenue has declined for more than a year. Unemployment hovers near 10%, and hotel-room occupancy rates have fallen to below 90% -- unusual for a town used to operating at near capacity.

City Center's over-the-top extravagance was conceived in a very different economic climate. When the project was unveiled in 2004, Las Vegas was at the height of a luxury-driven tourism boom. Gourmet restaurants were over-booked, room rates were skyrocketing and pricey shows were sold out. City Center was envisioned as the crown jewel.

MGM Mirage, controlled by billionaire investor Kirk Kerkorian, saw City Center as the next step in the evolution of both the company and Las Vegas.

The project, with two sleek condo towers, a 4,000-room resort casino, two smaller luxury hotels, a monorail, $40 million in public art and its own fire station, was envisioned as a "city within a city." MGM Mirage executives saw it as nothing less than a reinvention of Las Vegas.

Shortly after the project was launched, MGM Mirage Chairman and Chief Executive Jim Murren said, "City Center represents what we feel is a significant new direction for our city and our company."

Even under bankruptcy-court protection, construction could continue or be restarted once the two sides agree on how to fund the project. Neither company is likely to walk away. MGM Mirage has $1 billion in cash invested in the project, in addition to the land contribution. Dubai World has $4.3 billion invested.

While Las Vegas is worried about the impact on employment of a City Center delay, there is sentiment in the casino industry that any delay at City Center could help other casinos -- including those owned by MGM Mirage -- keep from losing even more visitors.

It is not clear what impact a City Center Chapter 11 filing would have on MGM Mirage's other finances.

MGM Mirage's lenders have become concerned enough about the situation that they have hired the law firm of Mayer Brown LLP as bankruptcy counsel, according to people familiar with the matter.

Bank of America and Deutsche Bank are the agent banks for MGM Mirage, said these people. MGM Mirage's lenders will not let the casino giant make the City Center payment Friday unless Dubai World makes its payment, according to people familiar with the matter.

MGM Mirage earnings are projected by Wall Street analysts to tumble to $1.2 billion to $1.6 billion this year, meaning to be in line with loan covenants it needs to reduce its debt to between $9 billion and $12 billion.

By JEFFREY MCCRACKEN and TAMARA AUDI, The Wall Street Journal

Century Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) announced today that its Century Casino & Hotel Edmonton, Alberta, Canada, will be home to the new Edmonton location of Mark Breslin's Yuk Yuk's Comedy Club, the world's largest chain of comedy clubs.

Pursuant to a five year agreement, the Yuk Yuk's Comedy Club is expected to open during the second quarter of 2009 adjacent to the gaming floor of the Century Casino & Hotel Edmonton and will complement the total entertainment experience the guests already enjoy at the casino.

Mark Breslin's Yuk Yuk's has been entertaining people for over 30 years and is considered Canada's national stand-up comedy chain with 15 clubs from coast to coast. Comedy stars that have graced the Yuk Yuk's stage over the years include Jim Carrey, Dan Aykroyd, and Norm Macdonald.

For further information about the Century Casino & Hotel Edmonton and the Yuk Yuk's Comedy Club please visit the websites under http://www.cnty.com/casinos/edmonton/casino/ and http://www.yukyuks.com, respectively.

SOURCE Century Casinos, Inc.

 

MGM MIRAGE (NYSE: MGM) today announced that it has completed its previously announced sale of Treasure Island Hotel & Casino ("TI") to Ruffin Acquisition, LLC for $775 million. Ruffin Acquisition, LLC is wholly owned by Phil Ruffin.

At closing, MGM MIRAGE received $600 million in cash proceeds and a $175 million secured note bearing interest at 10% payable not later than 36 months after closing. Ruffin Acquisition, LLC has an option to prepay this note on or before April 30, 2009 and receive a $20 million discount on the purchase price. The note is secured by the assets of TI and will be senior to any other financing.

"TI is in great hands with Phil Ruffin and we wish him and all of the property's wonderful employees nothing but the best," said Jim Murren, Chairman and CEO of MGM MIRAGE.

TI is located on the Las Vegas Strip and features 2,885 guest rooms and suites, approximately 87,000 square feet of gaming space, several fine and casual dining outlets, The Sirens of TI - the iconic pirate battle attraction, and Mystere, the first permanent production in Las Vegas by Cirque du Soleil.

"We are very excited to have acquired such a stellar resort in Treasure Island," said Mr. Ruffin. "The property is in pristine condition, ideally located in the heart of the Strip," Mr. Ruffin noted.

As a result of the sale, MGM MIRAGE expects to report a substantial gain in the first quarter.

Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.

SOURCE MGM MIRAGE

Resort is first in the U.S. to offer continuous betting throughout sporting events

Today, M Resort Spa Casino became the first U.S. casino to offer 'in-running' betting - wagering on live sporting events before and throughout the event - at its state-of-the-art Race and Sports Book. The M Resort, which opened March 1, has turned the tables on resort-casino architecture, amenities, service and now on the way guests bet on live events.

"You used to have to place your bets before the game started. Once the game got underway, all bets were off and you were sitting hoping your team pulled through for you," said Anthony A. Marnell, III, Chairman and CEO, M Resort. "Now, with in-running betting, you can watch the game on TV, while sitting in our Race and Sports Book, and update your bets in direct response to what happens during the game - totally immersed in the action of the game. It's fast-moving and continuously exciting."

The M Resort will offer in-running bets for select games, beginning today with men's college basketball and continuing with professional baseball and football. Initially, in-running bets can be made on the total points of the game, the spread or the money line. As bettors begin to utilize and understand in-running, more options will be added so bets can also be made on proposition-type wagers such as the number of free-throws scored during the game, the next team to score a touchdown, or whether the next pitch will be a strike and more.

Bettors can make educated decisions about how the game is shaping up and actually hedge their bets based on the action. Imagine being able to take the over in the third quarter, or bet the total points with minutes left in the fourth quarter. Or betting whether the next batter will strike out or the next pass will be a touchdown.

Guests must have an account to utilize in-running bets and can sign up inside the M's Race and Sports Book. The Race and Sports Book will also have extra betting tablets, roughly the size of a notebook, for guests to check out and carry with them anywhere in the Race and Sports Book.

Guests can join the action when they want, which means they can make a better judgment during the game as well as hedge bets that they may have made before the start of the event.

"With in-running betting you are always in the game. You're never out and never late coming to a game," said Marnell. "Everything is done in real time and you can see the points, spread and money line fluctuate as the game goes on. We're giving M's sports bettors the most innovative way to bet in the country and the most exciting way to do it."

Adjacent to M's Vig Deli, the Race and Sports Book mixes the comforts of home with cutting-edge technology and high energy gaming excitement. The Race and Sports Book offers traditional and VIP lounge seating to create a relaxed atmosphere where service is just as important as the game. With an adjacent access point and easy parking, the Race and Sports Book is convenient for bettors wanting to make a quick stop or an extended stay to enjoy M Resort's amenities. The M Resort Race and Sports Book offers individual player betting terminals, and lines on all major race and sports events including NASCAR(TM), golf, tennis and boxing.

SOURCE M Resort Spa Casino

Wynn Las Vegas is proud to host legendary basketball duo, Coach Bob Knight and Billy Packer, during the 2009 College Basketball Tournament.

The legendary duo will be in the Race and Sports Book daily following the games to interact with fans. Their new television series, "Billy Packer's Survive and Advance," will be recorded live on location at Wynn Las Vegas after the games on March 22, March 29, April 3 and April 5. The program features Knight and Packer as they analyze the games with special guests, including prominent coaches and players. Tapings are free and open to the public. Guests of the Sunday, March 22 program include Coach Denny Crum and former players Bill Russell and David Thompson. "Survive and Advance" will air later that evening, at midnight local time, on Fox Sports Net (FSN).

Wynn Las Vegas will host a viewing party during the college basketball games Thursday, March 19 through Saturday, March 21. Fans should visit the Wynn Ticket Office for more information on how to secure guaranteed seating and pre-paid food and beverages.

Wynn and Encore are offering "Get Your Game On" packages from just $199 per night, which include one resort room, guaranteed seating, complimentary snacks and beverages during the games and a chance to catch Bob Knight and Billy Packer live in action daily during the tournament. Packages may be booked online at http://www.visitwynn.com/getyourgameon or by calling 866.770.7410.

SOURCE Wynn Las Vegas

TableMAX Gaming, Inc., a wholly owned subsidiary of TableMAX Corporation (Pink Sheets: TBLX), a developer of electronic table games, has signed a contract for yet another system in the Coachella Valley, Calif., gaming marketplace. Now the company has signed a contract to install a Progressive Blackjack(R) System at Spotlight 29 Casino in Coachella, Calif.

The order is the very latest in a series of contracts and installations in the area, including two ePits(TM) at Fantasy Springs Casino in Indio and a Progressive Blackjack System at Red Earth Casino in Salton Sea Beach.

Spotlight 29 Casino Director of Slot Operations Tom Sedlock said, "There is always something fun and new happening at Spotlight 29 Casino, and Progressive Blackjack is definitely fun and new. We liked the game as soon as we saw it at the Global Gaming Expo, and we are excited to have it up and running for our players."

TableMAX CEO Stephen Crystal said, "Casinos across North America, particularly Tribal casinos, have caught the exciting TableMAX vision. We are thrilled with the response and look forward to presenting our games to Tribal operators at next month's NIGA trade show."

TableMAX's electronic versions of the popular table games Progressive Blackjack, Caribbean Stud(R) Poker, and Caribbean Draw(R) Poker provide players a fun and relaxed community gaming experience through realistic graphics and digitally mastered sound. The TableMAX(R) platform offers the lowest table game minimum bet in the Coachella Valley, with bets starting at $1.

About TableMAX CORPORATION

TableMAX is a developer of electronic table games and designs, engineers, and distributes patented electronic table games worldwide. TableMAX owns global rights to popular table game content, including Progressive Blackjack, Caribbean Stud Poker, Caribbean Draw Poker, Texas Hold 'Em Bonus(R) Poker and Bonus Blackjack(R).

SOURCE TableMAX Gaming, Inc.