Executives exiting Black Gaming
Two executives from Black Gaming resigned recently as Mesquite casino magnate Randy Black Sr. is taking back tighter day-to-day control of the casino company.
Chief Operating Officer Jonathan Lowenhar and Vice President of Marketing and Sales Scott DeAngelo left last week as part of corporate cost-cutting measures, filings with federal regulators show.
Both men joined the company in April 2005.
In a statement, Black, who is Black Gaming’s chairman and chief executive officer, said, “In the face of a challenging market, we have devised a new plan to reduce our corporate cost structure as we ride out this difficult time in the Mesquite market.”
Mesquite gaming revenues were $38.2 million between May and July, up less than a percent from 2006.
Chief Financial Officer Curt Mayer left Black Gaming in May after five years with the company.
Black Gaming owns the CasaBlanca, Oasis and Virgin River hotel-casinos in the rural town 80 miles northeast of Las Vegas.
What comes first, the rooms or the customers?
That question has vexed downtown casino operators during more than a decade of stagnant gambling revenue and hotel room inventory. Casino owners want to accommodate more customers but don’t have anyplace to put them. But they are also reluctant to invest in hotel towers without gambling revenue to cover the bills and deliver a healthy profit.
Terry Caudill, who owns the Four Queens and recently agreed to buy Binion’s for $32 million, says building space is another issue when responding to an investment analyst’s report that said there were tentative plans for 350 new rooms at Binion’s.
There are about 8,000 hotel rooms downtown. Since 1986 there have been just 2,400 rooms added, 56 percent of them were part of a major expansion of the Golden Nugget that same year. In 2005, the market lost 743 rooms when the Lady Luck closed.
“People talk about gaming not growing, but the room space hasn’t grown,” Caudill said. “It limits your invitation to people when you can’t offer them a room.”
Macau or Macao, take two.
Contrary to what was reported here last week, the government of Macau prefers to spell the region’s name as Macau, in deference to the Portuguese who ruled Macau for more than four centuries. Meanwhile, mainland China uses Macao in all references, showing a preference for the old English spelling. The Associated Press stylebook dictates that all references be spelled “Macau.”
Is that clear?
Las Vegas Sands Corp. is the only gaming operator in Macau using the mainland Chinese spelling, Macao, in all press materials.
The Inside Gaming column is compiled by Review-Journal gaming and tourism writers Howard Stutz, Benjamin Spillman and Arnold M. Knightly. Send your tips about the gaming and tourism industry to inside gaming@reviewjournal.com.