It's all verifiable: archives, resources and stuff they might not tell you.
A comprehensive archive chronicling the activities of Motor City casino syndicators (Marian Ilitch & Family, Michael Malik, Herb Strather, etc.); their associates, partners & affiliates; and the unfulfilled commercial & Indian casino schemes they are bankrolling in Michigan (Port Huron, Flint Township), Hawaii (Waikiki), New York (Long Island / The Hamptons), and California (Barstow).
Sunday, February 10, 2008
Local labor leader has been behind Port Huron casino schemes for 15 years
Labor leader sees casino as Port Huron’s best bet
By MIKE CONNELL
Times Herald
If a casino does open in Port Huron, and the odds look about as long as drawing for an inside straight, they should put a bronze bust of Dick Cummings in the lobby.
Cummings is president of the Michigan Machinists, a former leader of the county AFL-CIO and a tireless laborer in the vineyards of the United Way of St. Clair County. He’s also a founding father of the effort to bring a casino to Michigan’s easternmost city.
Fifteen years ago, he supported the campaign to put a gambling den in the downtown Sears building, left empty in 1989 when the retailer shuffled off to Birchwood Mall. That effort failed on July 13, 1993, when city voters rejected it, 5,120 to 4,751.
Seven years later, Cummings and Don Reynolds, owner of the Thomas Edison Inn, led a second campaign. They launched it a few weeks after the Point Edward casino opened directly across the St. Clair River, maybe a 3-wood from the inn’s front lawn.
Many people who opposed the casino in 1993, and I count myself among them, had changed their minds by 2000. The folks feeding the slots in Point Edward didn’t exactly look like gangsters and degenerates. In fact, they looked a lot like us.
That’s because they were, of course. Then and now, the majority of visitors to Point Edward and Hiawatha Slots were middle-class Michiganders out for dinner and a giggle. No harm. No foul. No fear.
In the summer of 2001, a second casino advisory vote won approval, 3,111 to 2,628.
■ For 6½ years, Cummings has been a warrior for the casino. It’s a crusade, a jihad, a holy war of sorts.
His quest begins and ends with jobs. Early on, he won a promise from the casino developers that they would hire locally and pay union wages.
Port Huron’s unemployment rate has been in double digits for most of the Bush presidency. This past Christmas, one of every seven workers in the city was jobless. In rough numbers, the local unemployment rate is double the state average and triple the national average.
So much for statistics. From his office at the United Way, Cummings has seen the suffering behind those numbers. He can tell you of mothers who go hungry so their babies can eat, and of fathers who put off medical care until the ambulance arrives. He can tell you of desperation and despair, heartbreak and horror, homelessness and hopelessness.
He can slice through your heart with nothing sharper than the truth, and bring you to your knees with nothing heavier than a prayer.
“Most people don’t want a handout,” he says. “They want a job.”
Amen, Dick. Amen.
■ Year after year, the economy worsens, the jobs disappear and our government does the one thing it does best.
Nothing.
Speeches we’ve heard, all sass and sanctimony. Games we’ve watched, ruses and ploys. What we’ve heard isn’t too hopeful. What we’ve seen isn’t much progress. After 6½ years, a Port Huron casino bill has yet to earn a vote from a congressional committee, although that may change this week.
What hasn’t changed is the strength of the opposition.
In 2002, it was Nevada’s Harry Reid, now the most powerful individual on Capitol Hill, who put the kibosh on Debbie Stabenow’s bill in the Senate. A series of bills in the House have been shot down by influential Republicans, including Brighton’s Mike Rogers and the shameless Tom Delay, self-styled czar of K Street.
The fact that Jack Abramoff was paid $14 million and change to nuke the Port Huron bill, among other chores, may or may not be relevant. You decide.
The good news is Abramoff has gone away for a spell — five years and 10 months without a show of good behavior. The bad news is his old clients had no problem buying new help. In the past week, Port Huron’s opponents have launched a couple of advertising campaigns that smell worse than Chemical Valley in an east wind.
In the wake of the Abramoff scandal, one would think our representatives in Washington could see through such blatant deceit and manipulation. If they can’t, then God help us, because no one else will.
■ Last week, Cummings hopped over to Washington to watch the House Natural Resources Committee debate the Stupak-Miller bill.
“I think it went well,” he said on his return, “even though Detroit was there in full force.”
The casino’s most intractable opponents begin with Kwame and his Mommy — Detroit Mayor Kwame Kilpatrick and Rep. Carolyn Cheeks Kilpatrick, leader of the influential Congressional Black Caucus.
The Saginaw Chippewa, who made Abramoff a multi-millionaire, continue to bankroll the opposition. So does MGM Mirage, the gambling empire built by Kirk Kerkorian, who’s 90 and has amassed a billion dollars for each of his nine decades.
In one way or another, most of the players have money riding on the outcome.
Many of the supporters have received generous campaign contributions from casino promoter Mike Malik and his good friends, the Ilitch family. Most of the opponents have profited from knowing the fine people at MGM, which owns the most profitable of Detroit’s three casinos, and the Saginaw Chippewa, owner of the most profitable of Michigan’s 20 casinos.
■ If I were a betting man — and anything more than 10 minutes at a slot machine is my idea of purgatory — I’d say the odds of Dick Cummings seeing himself in bronze are slim.
Approval from the 49-member Natural Resources Committee is anything but certain, and that’s only the first of many hurdles. On the floor of the House, the measure would not receive a vote without the blessings of Speaker Nancy Pelosi and Steny Hoyer, the majority leader, who are more than a little concerned at the threat to Democratic solidarity, an oxymoron even in the best of times.
Should the measure win approval in the House, a companion bill would need to wend its way through the Senate and Harry Reid’s tender mercies. And even then, legal challenges are all but promised by Detroiters who believe that if their city loses even one dollar to Port Huron, it is one dollar too many.
For all this, Cummings sounded optimistic Friday when we chatted. His belief is that Port Huron has facts on its side while what the opposition mostly has is greed.
“Hopefully, it gets to the House floor and gets thoroughly debated,” he said. “Detroit is ganging up on us, but facts are facts. People with more common sense are seeing through the smoke.”
And what about the Senate?
“I think we’re going to get there,” he said. “Senator (Carl) Levin and Senator (Debbie) Stabenow are in full support, and so is the governor. I think we’ll get a fair hearing.”
It almost seems too much to ask.
Columnist Mike Connell can be reached at (810) 989-6259 or mconnell@gannett.com.
Tuesday, February 05, 2008
"Gambling Watch" launches campaign against off-reservation casinos in Michigan
Miller calls foul over highly organized opposition campaign
By MIKE CONNELL
Times Herald
Directing its appeal to "Michigan families," a newly incorporated organization has launched a direct-mail campaign aimed at blocking proposed casinos in Port Huron and Romulus.
There is a twist, however.
The organization - Gambling Watch - isn't a grassroots anti-gambling group opposed to casinos on moral or ethical grounds. In fact, it's a corporation created just two weeks ago by a Lansing public-relations specialist whose clients include MGM Mirage, a giant in the gambling industry and a fierce opponent of the two casinos.
"This was put together by a very well known, highly paid political consultant who has worked for other casino interests, other gaming projects in Michigan," said Rep. Candice Miller, R-Harrison Township, whose district encompasses Port Huron. "Spare me the righteous indignation."
Gambling Watch was incorporated on Jan. 18, according to the Michigan Department of Labor and Economic Growth. The legal paperwork was handled by a lawyer with Dickinson Wright, a Lansing law firm that counts MGM Mirage among its clients.
Gambling Watch's resident agent is Lori Wortz, the chief operating officer of Sterling Corp., a Lansing public-relations firm that specializes in ballot proposals and public-policy issues.
Conservative activist
Wortz is well-known in conservative political circles. She oversaw Pat Robertson's 1988 presidential campaign in Michigan and later worked for the Republican National Committee. Last month, she helped guide Mitt Romney's campaign to a primary victory in his native state.
In a telephone interview, Wortz acknowledged her work with MGM Mirage but said Gambling Watch was strictly her initiative.
"They're supportive of it," she said of MGM, "but there are other people who support it, too."
MGM Mirage, based in Las Vegas, has annual revenues in excess of $7 billion. Its majority owner is Kirk Kerkorian, 90, whose personal fortune was estimated at more than $9 billion last year by Forbes magazine. According to federal disclosure forms, MGM spent at least $160,000 in the first half of 2007 to lobby against a Port Huron casino.
The people spoke
Wortz recalled campaigning for a 2004 ballot initiative that amended the state constitution to require voter approval of any expansion of gambling in Michigan. The measure was aimed at so-called "racinos," or the legalization of slot machines at seven horse tracks in southern Michigan.
MGM Mirage, which has invested more than $800 million in a casino-hotel in Detroit, and the Saginaw Chippewa, which runs the state's largest casino in Mount Pleasant, did not want competition from race tracks. They poured money into the campaign for the 2004 proposal, which passed easily.
Wortz said the voters spoke clearly, which is why she believes it would be wrong to allow casinos in Port Huron and Romulus without a statewide referendum.
"What I feel and many others feel is that it's important for voters to be aware that this is about expansion of gambling," she said. "Any expansion in the state should go to the voters."
Families on alert
Gambling Watch has shared that message in fliers mailed to households across the state. The flier carries a large headline: "Michigan Family Alert." A smaller headline adds: "Washington Poised to Force Two New Casinos on Michigan Families. Only You Can Stop the Special Interests."
The flier mentions Wednesday's congressional hearing and calls on people to contact five politicians - Sen. Carl Levin, D-Detroit; Sen. Debbie Stabenow, D-Lansing; Rep. John Dingell, D-Dearborn; Rep. Bart Stupak, D-Menominee; and Miller.
It says the five "can put a stop to this special interest attempt to add two more casinos to the 22 Michigan already has."
Dingell and Stupak introduced the two bills that will be debated at Wednesday's hearing. Levin and Stabenow have expressed support for a Port Huron casino.
Fair play, free trade
For the five years she has been in office, Miller has been steadfast in her support of a Port Huron casino, describing it as a matter of fair play and free trade.
She noted Port Huron is the only American border community that has not been allowed to compete for the jobs and tax revenues generated by casinos on the Canadian side.
She expressed frustration with Detroit Mayor Kwame Kilpatrick and his refusal to reach out to Port Huron.
"I remember when he was saying we had to support casinos in Detroit so his city could compete for all the American dollars going to the casino in Windsor," she said. "And he was right, just as it's only right to let Port Huron compete for all of the American dollars going to Point Edward and Sarnia."
Miller also observed that Port Huron's entire political delegation - local, state and national - supports the casino.
She said her office has received "upwards of 500 phone calls in the last week" from people responding to Gambling Watch's mailer. Little if any of that opposition was coming from St. Clair County, she added, "and we're certainly not getting any from Port Huron."
Nick Choate, an aide to Stupak, said his office also has been getting calls. "I don't have an exact number. We are getting a few," he said. "I wouldn't say the phones are ringing off the hook."
Choate said he was unaware of Gambling Watch's origins.
Deceptive tactics
For her part, Miller clearly wasn't amused to learn of the ties to a public-relations agency and a law firm that represent MGM Mirage.
"When my staff first told me about these fliers, I said 'I can tell you right now who's behind this,'" she recalled. "Who would pay for a mailing like this? It had to be other casino interests. This thing is about money."
She said people who oppose gambling for reasons of conscious were being manipulated by special interests with hidden motives.
"Have you heard of Jack Abramoff?" Miller asked, naming the corrupt lobbyist who is serving a federal prison sentence for fraud, conspiracy and tax evasion. "These people who put this flier out have taken a page right out of the Abramoff playbook. These are exactly the kind of tactics he would do for his clients. It's a very deceptive thing."
Miller is scheduled to testify at Wednesday's hearing, which focuses on bills introduced by Stupak and Dingell. She also said the 48-member committee is not expected to vote on the measures until later this month.
If the committee approves the bills, they would go to the full House for its consideration. Companion legislation has not yet been introduced in the Senate.
Friday, September 21, 2007
Forbes reports MGM Mirage owner biggest gainer on 2007 List of Richest Americans

The biggest gainer on Forbes 2007 Richest Americans List was Kirk Kerkorian, who padded his fortune by $9 billion as shares of his MGM Mirage (nyse: MGM - news - people ) casino outfit rose 135% over the past year. The 90-year old Kerkorian enters the top 10 at lucky #7.
According to Forbes:
Kerkorian is the "Son of Armenian immigrant fruit farmer dropped out of school in eighth grade. Trained U.S., British fighter pilots during WWII. Flew surplus Air Force planes across Atlantic after war before building charter flights company Trans International Airlines; sold for $104 million profit 1966. Acquired Flamingo Hotel in Las Vegas 1967, built International Hotel 1969. Sold both properties to Hilton Hotels 1970. Went Hollywood: made billions buying and selling movie studio MGM, 3 times since 1969. Back to Vegas: nabbed Steve Wynn's Mirage Resorts for $6.4 billion 2000, then Mandalay Bay Resorts for $7.9 billion 4 years later. Today MGM Mirage owns more than half the hotel rooms on Las Vegas Strip; shares up 140% in past 12 months. Attempted to personally buy Bellagio casino, unfinished 76-acre resort complex CityCenter from MGM Mirage this spring; pulled out after company struck deal with Kerzner International to develop 40 acres of land on Strip. In August sold half of CityCenter, 9.5% chunk of MGM to Middle East investment firm Dubai World for $5 billion. Spent 20 frustrating months fighting to reshape General Motors; believed to have sold entire stake last November."
Monday, September 10, 2007
Have Detroit casino syndicator Michael Malik and Mrs. Marian Ilitch been fronting again for Las Vegas gambling interests?
And why would the owners of two of Detroit's three large commecial gambling halls be financing plans for another casino less than an hour outside of Detroit in Port Huron when Detroit's Mayor has actively opposed such plans? Or do they really want a casino in Port Huron at all?
Forbes.com has posted an Associated Press story indiciating that MGM Mirage paid a D.C. lobbying firm $160,000 during the first half of 2007 to lobby among other things for congressional approval of a scheme to build an off-reservation Indian casino in Port Huron, Michigan. Official disclosure documents on file with the Secretary of the U.S. Senate confirm these details. The Bay Mills Indian Community only reported lobbying costs of $70,000 for the first half of 2007
Entities controlled by or affiliated with Detroit casino syndicator Michael J. Malik, Sr. and Mrs. Marian Ilitch have previously fronted more than $2 million lobbying for the Bay Mills casino scheme since 2002.
For years now, Michael Malik has been out front promoting the off-reservation casino in Port Huron for the Bay Mills Indian Community. The tribe has two casinos on its Brimley, Michigan reservation more than 300 miles from Port Huron.
Reports are that Marian Ilitch is behind the Bay Mills Port Huron casino too. Among other things, Marian, her husband Mike Ilitch and their children have personally contributed hundreds of thousands to Members of Congress who have backed the Bay Mills casino scheme and raised thousands more from their friends, colleagues, vendors and agents.
Michael Malik, while not an employee of Ilitch Holdings, Inc. has his office on the 10th Floor of the Fox Theater Building in Detroit which is the executive suite for Ilitch Holdings, Inc. Reports are that his office has direct access into Marian Ilitch's personal office.
In 2005, Marian stepped up and helped facilitate MGM Mirage's acquisition of Mandalay Resort Group. Mandalay was majority owner (53%) of MotorCity Casino. Marian owned 25% at the time. MGM Mirage owned the MGM Grand Detroit. Michigan gaming law prohibits one company from owning majority interest in multiple casinos. It was reported that MGM majority owner Kirk Kerkorian agreed to the plan in which Marian managed to quickly put together nearly $1 billion in financing and jumped through other hoops to acquire Mandalay's interests in MotorCity Casino so the merger/acquisition of the powerful Las Vegas company's could sail through smoothly.
In 1996, Marian, Michael Malik and another partner, Tom Celani, were reported to have contributed $5 million toward an 11th hour advertising blitz for Proposal E, the statewide ballot measure that permitted the establishment of three commercial casinos in Detroit. But according to documents filed with the SEC, within months of the election, Mandalay Resorts (Circus Circus) had agreed in writing to reimburse the $5 million plus in last minute political contributions the partners made and become majority interest in Detroit Entertainment LLC, the parent of MotorCity Casino. A subsequent Operating Agreement for Detroit Entertainment LLC filed with the SEC supports this as well.
In 1999, the Michigan Gaming Control Board denied a gaming license to Malik and he was forced to sell any interest in MotorCity Casino to Marian Ilitch. Since then he has worked side-by-side with Marian on various gaming proposals from New York to Hawaii. Malik has never been licensed for gaming but Marian Ilitch has been licensed in Michigan.
Malik and Ilitch had fronted (and reportedly bankrolled) a scheme to legalize gambling in Hawaii and have also pushed Indian Casino schemes in Barstow, CA -- alongside I-15, the road between Los Angeles and Las Vegas; and on Long Island in the posh Hamptons resort area.
- Casino developer reportedly has track-record of dishonesty and deceipt
- Malik established new entities, possibly to bring in new funding sources for ongoing Port Huron casino scheme
- PDATED: Detroit casino syndicators had previously masked their $665,000 relationship with controversial D.C. Lobbyist
- UPDATE: Posts set context and detail scheming, conflict$ behind Detroiters' off-reservation casino proposal
- D.C. Lobbyists for Michael Malik's Port Huron casino scheme terminated
- The ties that bind Rep. Candice Miller to Mike & Marian Ilitch and their associated casino syndicator pal Michael Malik
- How Detroit casino syndicators financed the campaign that brought Las Vegas-style casino gaming to Detroit
- Ilitch Team's political contributions & influence helped Nevada's Sen. Harry Reid become Majority Leader
- Michael Malik at epicenter manufacturing behind the scenes drama in Michigan’s remote Charlotte Beach subdivision.
- Timeline: Port Huron Casino
- A handful of federal political campaign disclosure records indicate Michael Malik as an employee of Ilitch Holdings
- Developer's been chasing Tribe's off-reservation casino schemes for more than 15 years
NewsMeat.com provides a snapshot look at Ilitch Family DC political contributions and bundling practices - UPDATED: Here's how others describe Michael Malik and his pals who seek to exploit Indians for personal financial gain
- Tribe's casino backers have paid DC lobbyists at least three-quarters of a million dollars
Bay Mills Indian Community has paid Capitol Hill Lobbyists $1.32 million - Rep. Stupak again introduces bill for off-reservation casino; developer's 7th attempt at Port Huron casino scheme approvals
- Tribe to borrow $4 million to fund federal grant requirement, other investments in Plastics venture
- UPDATED: Donor's alleged mistress also gave $10,000 to two of his favorite candidates -- Rep. Candice Miller & Sen. Debbie Stabenow
- A Case of Abramoff-Lite: Pombo was doing favors for his Motor City Casino friends
- Port Huron Casino backers help raise nearly $100,000 for Sen. Carl Levin
- Casino Syndicator Michael Malik directly controls these 4 D.C. lobbyist employers
- Bay Mills Indian Casino backers behind first fundraiser for Rep. Candice Miller
- UPDATE: More money (post election) to Sen. Stabenow brings total to $117,200 from Malik & the Ilitch Family
Tuesday, February 06, 2007
Max Shapiro: The History of the Barstow Card Casino - Sent Using Google Toolbar
>From time to time, I get irate e-mails from people who have stopped by Big Denny's Barstow Card Casino out of curiosity after reading my column, only to discover that the experience was as frightening as it was costly. My standard response is that I am just an objective reporter, so please don't blame me. Recently, however, I got a message that wasn't as easy to slough off. It was from Phil Hellmuth. He bitterly complained about being cheated in a $20 crazy pineapple tournament there. Time after time, he said, he flopped nut-nut, only to have his low counterfeited on the turn, and then his high outdrawn on the river. Furthermore, after making three rebuys, he had to use the ATM machine, and was shocked to be hit with a $50 "courtesy" charge. He said he blamed me for publicizing the casino, was planning to sue to get his money back, and wanted me to provide as much information as I could about the background and history of Big Denny and the Barstow Card Casino. This wasn't too easy, because Big Denny isn't exactly noted for being either forthcoming or reliable, but after doing a lot of research, here's what I came up with. Let's start with the town of Barstow, a quiet little community of some 23,000 souls located off southern California's highway I-15. A few thousand years ago, geologists tell us, the area was covered by massive lakes, a fact that came to light with the unearthing of ancient marinas, outboard motors, and the remains of Indians in bathing suits. It's now the Mojave desert, and the only water to be found is in bottles. The area experienced something of a boom in the 1800s with the discovery of silver and later, borax, but eventually the mines played out. It regained some notice during the Great Depression as a railroad terminal and the jumping-off place for destitute dust bowl farmers migrating to California and looking for work, as dramatized in John Steinbeck's classic novel, "The Grapes of Wrath." Today Barstow's main claim to fame is that it lies halfway between Los Angeles and Las Vegas and has become a handy site for destitute tourists returning from Sin City and looking for a railroad bridge to jump off. For years there was nothing much to do in Barstow. It's located near the Calico Ghost Town, and all its annual celebrations seem to be based on that fact. In February there's the Calico Ghost Town Civil War reenactments. In May we have the Calico Ghost Town Spring Festival and Chili Cook-off. In October, Barstow has the Calico Ghost Town Ghost Haunt. And in December, there's the Calico Ghost Town Heritage Fest. After a while, even the ghosts began getting bored. Then came the Barstow Card Casino, but that wasn't exactly an earth-shaking event either. It was originally called Farley's Feed Lot, a shabby, rundown barn where farmers could buy feed and board their cows. It soon became a hangout for rustics looking to get away from their wives for a while and play a little red dog. As travelers looking for action heard about the place, Farley began putting in poker tables and moved the boarding cows into the overhead hayloft. Thus was born the Barstow Card Casino, a small but comfortable gaming establishment where patrons could get a fair shake, so long as they didn't mind the smell of cow manure and the occasional straws drifting down on their heads from the overhead hayloft. Enter Big Denny, a thuggish ape and star graduate of various reform schools who had been gainfully employed as a "collection agent" for mob extortionists. "Pay up or Big Denny will sit on your head" became the most dreaded phrase in the business. Denny ended up serving a prison term when he sat on one head too many, splattering on the floor the brains of an uncooperative gentleman who had fallen a bit behind in his payments. But he managed to get his sentence commuted by turning informant on his mob bosses and entering the witness protection program. Figuring that Barstow would be the last place anyone would look for someone like Big Denny, the feds relocated him there, getting him a job as a security guard at the casino. Law enforcement was not a very good fit for the big guy. Barstow, a peaceful town where crime had been virtually nonexistent, suddenly began experiencing a rash of break-ins at the casino parking lot, along with an occasional mugging. It wasn't hard for Farley to put two and two together. Never happy with being forced to hire Big Denny in the first place, he now informed him that he was out of a job. "I got a better idea," Big Denny replied. "How's about ya just turn da joint over ta me?" Farley's laughter abruptly ended when he found himself pinned to the floor under Big Denny's rump. A document transferring ownership was then drawn up and hastily signed by Farley, followed by Big Denny's "X." No one ever saw the former owner after that. Denny told everyone that Farley had decided to retire and relocate in Florida. The conventional wisdom around Barstow, however, is that Farley had been relocated in a hole in the ground in the desert somewhere off I-15. Now in control, Big Denny immediately embarked on an "upgrade" for the Barstow Card Casino. He fired all the dealers and brought in a crew of ex-cons whom he had met in prison. They were taught how to deal seconds to confederates, and then put on commission, getting a percentage of everything they could snatch out of pots. An illegal dice table was installed in the back room and stocked with loaded dice. Patrons entering the parking lot were "encouraged" to valet park for usurious fees to prevent their tires from being slashed. In return for pay-offs, Big Denny gave cheating teams free rein in tournaments and side games. Chip runners not only shortchanged patrons, but also sidelined as loan sharks. Today the casino is regularly raided by the Barstow Police Department, but Denny's place in the witness protection program earns him a certain amount of immunity. And, of course, patrons who complain too vigorously seem to have a habit of suddenly disappearing. Well, Phil, I hope this information is helpful. There are even worse details I could provide, but I don't want to push my luck. And if I were you, I'd think twice before taking Big Denny to court. You might not live long enough to win your 11th bracelet. |
ARCHIVE of Max Shapiro's Barstow Card Casino Features
Saturday, January 27, 2007
Sector Snap: Casino Operators
MGM Mirage stock may have topped out

Shares of casino operators were trading mostly lower on Friday after an analyst initiated coverage on several companies in the sector.
Prudential Equity Group's Joel Simkins gave MGM Mirage a "Neutral" rating, saying in a client note that he was optimistic about its more than $7 billion CityCenter project in Las Vegas.
But the company's stock may have hit the ceiling.
"While MGM Mirage has an impressive pipeline of domestic and international growth opportunities, we think the shares are due for a breather given a roughly 100 percent move in the stock since September 2006," he wrote.
While he is cautious on Trump due to competition from Atlantic City megaresorts being developed and newer slot facilities in Pennsylvania, Simkins said internal and external development opportunities could provide catalysts for Trump.
Simkins also initiated coverage on Ameristar Casinos Inc. with a "Neutral" rating.
In a separate note, Simkins issued an "Underweight" rating for Isle of Capri Casinos Inc. on a slowdown in Biloxi and more competition.
"After the company came up empty in Pennsylvania and Singapore, we think its growth pipeline is average at best, and we see increasing competitive challenges across the portfolio," he said.
With casinos increasingly coming back online in the Gulf Coast after Hurricane Katrina, Isle is starting to face normalized results in the market, which could lead to further estimate reductions, Simkins explained.
Simkins is particularly concerned about the possible $3.4 bilion to $3.6 billion Pinnacle may spend on new projects, saying in a client note that the amount "is significant considering the company had total assets of $1.5 billion in the third quarter of 2006."
Simkins gave Penn National Gaming Inc. and Boyd Gaming Corp. "Overweight" ratings. Penn and Boyd both look to benefit from "solid pipelines" and diversified portfolios, he explained.
Shares of MGM fell 78 cents to $69.15 in midday trading on the New York Stock Exchange.
Ameristar declined 80 cents, or 2.6 percent, to $30.28 on the Nasdaq. The stock has been trading in a 52-week range between $16.73 and $33.41. Isle of Capri dropped 65 cents, or 2.6 percent, to $24.65 on the Nasdaq. The stock has been trading between $18.98 and $34.30 for the past 52 weeks.
Pinnacle's stock dipped 37 cents to $33.43, while Boyd slipped 48 cents to $46.56 on the Big Board.
Saturday, December 02, 2006
Kirk Kerkorian's Influence on Gaming in Michigan, Detroit's Casinos and Marian Ilitch
"Kirk Kerkorian ... reclusive 87-year-old billionaire threw Detroit casino scene into further disarray … his Vegas-based MGM Mirage announced $7.9-billion bid for Mandalay Resort Group … must sell MGM Grand Detroit Casino or MotorCity… Kerkorian decides who will be new owner … further delays in permanent casino-hotels in Detroit Kerkorian owns 53% of MGM Mirage … merged entity will control 10 casinos ½ the hotel rooms & gaming tables in Vegas, plus 18 other properties. Kerkorian’s Detroit ties: bought Chrysler; trying to takeover GM, second home in Detroit ... The upshot: Kerkorian gets to decide who will join MGM and Greektown as Detroit's newest casino owner ... unclear whether Kerkorian, of Las Vegas, spends any time in Detroit ... Former Chrysler executives don't recall Kerkorian visiting here ... don't discuss his personal whereabouts, but no reports of him ever visiting the MGM casino in Detroit.
"Kerkorian ... married for a month in 1999 ... longtime companion Lisa Bonder, formerly of Saline (Michigan), but given squabbling later in court over paternity of a child ... turned out not to be Kerkorian's -- unlikely he spent much family bonding time in Michigan ... here or not ... What we do know is that he's shaking things up around Detroit more than any other 87-year-old. "
Other Kirk Kerkorian Resources:
The New York Times: News, commentary and archival articles published on Kirk Kerkorian
About.com: Kirk Kerkorian - Father of the Mega-resort
Answers.com: Kirk Kerkorian
Las Vegas Review Journal: The First 100 Who Shaped Nevada
Forbes 2006 "Richest Americans:" #53 Kirk Kerkorian
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NEWS: Los Coyotes / Barwest Barstow Casino Proposals
NEWS: Michael J. Malik, Sr.
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