By Staff   Fri, Aug 27, 2010

Anyone who has ever worked for Dennis Gomes knows his love of karate. In most of the casinos he’s led, classes have been set up for executives to learn the great art of self-defense, which Gomes uses to teach business lessons to his troops. Gomes will need all that skill and more when he is approved to buy Resorts Atlantic City, the first casino to open on the Boardwalk in 1978.

In Resorts, Gomes is getting the original Atlantic City casino, but he’s also getting a slew of headaches. The property has seen steadily decreasing revenue over the past two years and the previous owner, Colony Capital, turned the property over to its lenders nine months ago because of its declining fortunes. Operated under Colony and the lenders by former Trump executive Nicholas Ribis, Resorts has a split personality. The old hotel—known as Haddon Hall in pre-casino days—has small rooms, narrow corridors and a challenging layout. A new expansion, opened in 2005, is sleek and modern, with some of the largest rooms in the city. It’s art deco style blends well with the older structure—so well in fact that many observers forget that it was built after the opening of the Borgata and applied many lessons from that successful Atlantic City property.

Gomes, a noted former regulator in Nevada and New Jersey whose investigation into Frank “Lefty” Rosenthal and the Stardust routed one of the last vestiges of organized crime in Nevada casinos (the subject of the book and movie of the same name, Casino), is known for his knowledge, innovation and enthusiasm. After resigning as a regulator, he went to work for Steve Wynn, Barron Hilton and Donald Trump. His last full-time job was operating the Tropicana and directing the construction of its highly successful shopping area, the Quarter, and a new hotel tower. He had been associated with the Cordish Companies for several years until 2009, when the two split.

Since his time at the Tropicana, Gomes has been one of the biggest cheerleaders for Atlantic City. He disputes the fact that the casino industry in the city is doomed to shrink because of regional competition and his purchase of Resorts is a perfect way to prove his point.

“"I believe in this property,” Gomes said in a statement. “It heralded the beginning of casino gaming in the East and has always had a special place in my heart.”

“We are going to bring it back to life with even more energy and vitality than it possessed at its creation in 1978,” he continued. “I promise everyone that it will ultimately be the place to be and to be seen and will be the center of fun and excitement in our fabulous city.”

Gomes has chaired a committee set up by Atlantic City Mayor Lorenzo Langford to decide how to prioritize necessities to improve the city and attract more visitors. He said he completely backs plans by New Jersey Governor Chris Christie to create a tourism zone in Atlantic City that will be controlled by a quasi-public agency.

“I am also encouraged by the recognition of our governor and legislators that Atlantic City is a tremendous asset to the state of New Jersey and its economy,” he said. “They realize the need for the government to partner with the casino industry in order to nurture and revitalize Atlantic City during the national economic downturn we are facing.”

Ribis has been operating the property for the lien-holder, Credit Suisse Group. He had expressed interest in buying the property, but Gomes has apparently beat him to the punch. Although Gomes would only say that he paid less than the $140 million that Colony Capital paid to acquire the property, some experts speculate that his purchase price could be as little as $50 million.

While the deal is subject to the approval of the Casino Control Commission, the board’s chairwoman was excited about the agreement.

“This investment is a clear indication that there is a great deal of potential in this market,” said Linda Kassekert. “We are hopeful that this will not only revitalize Resorts, but all of Atlantic City.”

In addition to more than 900 rooms and 100,000 square feed of casino space, Resorts Atlantic City also includes more than 10 acres of land. The property employees 2,100 workers.

By Staff   Fri, Aug 27, 2010

Reese Palley was called the “merchant to the rich” when he ran a series of art galleries in Atlantic City and New York City in the 1960s and ‘70s. He was a showman who truly understands how to market his products. As a businessman in Atlantic City when casino gaming was legalized, he believed that they should move all the 30,000 residents out of the city and clear the land to create a “Disneyland” with casinos. While his suggestion was considered outrageous at the time, hindsight tells us that maybe he had a point. And now that New Jersey Governor Chris Christie has another plan to revitalize Atlantic City, Palley believes his original idea should be revisited. Palley still has some strong opinions on Atlantic City. He spoke with Global Gaming Business Editor Roger Gros and Associate Editor Marjorie Preston by phone from his home in Key West in August.

Fri, Aug 27, 2010

It was a stormy relationship over the five-year span, and last week it ended when Victor Drai cut his ties with Wynn Resorts.

Drai was brought in by company chairman Steve Wynn after the original nightclub at Wynn Las Vegas, La Bete, flopped. Redesigned and renamed “Tryst,” Drai transformed the space and created a profit that immediately impressed Wynn.

Later, when Encore opened, its spectacular nightclub, XS, was even more successful. But Drai often clashed with Wynn and his newest club in Los Angeles, Drai's Hollywood in the W Hotel, opened in March, keeping him away from Las Vegas for weeks at a time.

But it is rumored that Harrah’s is talking to Drai about transforming the site of his original Las Vegas success, Bill’s Gambling Hall (then owned by Michael Gaughan as the Barbary Coast). According to reports, Drai would create a boutique hotel for the hippest visitors to Las Vegas, complete with nightclubs, high-end restaurants and more.

Replacing Drai as manager of Tryst and XS (as well as the Botero restaurant) are nightclub impresarios twins Jesse and Cy Waits.

Andrew Pascal, president of Wynn Las Vegas and Encore, said the parting was amicable.

“In order to pursue other interests, Victor Drai has entered into an agreement with Wynn Las Vegas allowing him the ability to pursue a wide range of business opportunities which would necessitate reducing his responsibilities with our company,” said Pascal. “Hence, the relations that have worked so well for both Wynn Las Vegas and Victor Drai have come to an end on the best of terms, with the warmest possible feelings of both parties. Speaking for Mr. Wynn and myself, we wish Victor well in his future endeavors.”

Fri, Aug 27, 2010

MGM Resorts announced last week that Lorenzo Creighton has stepped down as CEO of MGM Grand Detroit. No timetable for his departure or any other information was released by the company.

Crain's Detroit Business said Creighton was leaving to take over as CEO of Gateway Casinos, a Canadian gaming company based in Vancouver. Gateway is controlled by Australia’s James Packer and Crown Casinos, and operates nine casinos across Canada.

Creighton got his start in the gaming industry as a regulator in Iowa and Mississippi before getting into operations. He became the first African American to lead a Las Vegas property when he was general manager at New York New York Casino Hotel. He was also the first to lead a Detroit property.

Fri, Aug 27, 2010

Gaming Partners International Corporation announced that the company has promoted Gerald Koslow to the position of chief financial officer and treasurer, filling the positions left open with the departure of David W. Grimes in late July. Koslow joined GPI in November 2009 as controller.

Koslow's primary responsibilities will include managing the company's financial reporting and assisting with its financial growth. He will also serve as CFO and treasurer of the company's subsidiary Gaming Partners International USA, and will report directly to Greg Gronau, president and chief executive officer.

Prior to joining GPI, Koslow was the vice president and controller of Upper Deck Company, a private sports and entertainment trading card manufacturer and distributor. Before that, Koslow was chief financial officer of Shuffle Master Gaming.

“We are delighted to announce the promotion of Jerry Koslow to CFO,” said Gronau. “Koslow brings a wealth of experience to the position and has distinguished himself over the years with his acumen in the field of financial management.”

Fri, Aug 27, 2010

Jim Rigot, a 35-year veteran of the gaming industry, is resigning as general manager of Trump Plaza Hotel and Casino. Mark Sachais, general manager of Trump Marina Hotel Casino, will serve as Rigot's replacement at Trump Plaza, overseeing both properties, the company said in a statement.
    
Rigot said farewell to Trump Plaza employees in an e-mail, saying he intends to spend more time with his wife and family. “I am grateful and honored to have served as your general manager at Trump Plaza,” he wrote. “Please know that I loved my job. I loved coming to work; I loved what I did every day. But tantamount to my enjoyment of work was, indeed, my good fortune to work with and for such fine and caring individuals as you.”
    
Rigot started as Trump Plaza's general manager in 2005. His career in Atlantic City also included stints as a senior executive at Borgata Hotel Casino & Spa, and at TropWorld Casino and Entertainment Resort, now Tropicana Casino and Resort. His resignation is effective October 8.

Fri, Aug 27, 2010

Steve Karoul, who has more than 30 years of casino experience, has been named the new vice president of casino marketing at Foxwoods Resort Casino and MGM Grand at Foxwoods.

Mashantucket Pequot Gaming Enterprises said Karoul will plan and implement promotional programs for both properties and will also be responsible for managing special events at the two properties in Connecticut. He will report directly to Chief Marketing Officer Robert Victoria.

William Sherlock, president of the Mashantucket Pequots' gaming enterprises group, said Karoul’s “years of experience, along with his thorough knowledge of the industry, will be a major asset to our marketing department. We couldn't be happier to have him on board.”

Karoul was a vice president of marketing from 1999 to 2006. He most recently served as senior vice president of strategic casino marketing for the Las Vegas Sands Corp. He was responsible for staffing and organizing its new Marina Bay Sands casino operation in Singapore.

Karoul also has served as the president and CEO of the Ciragan Palace Casino in Istanbul. Other assignments include VP of international casino marketing at Caesars World in Las Vegas and executive director of international marketing for Sun City Casino in South Africa.

He also has done consulting work on a global basis, including for the Ritz Club in London, and he serves as a lecturer in the industry and has written numerous articles on casino-related marketing issues.

Fri, Aug 27, 2010

Tamares consultant and longtime casino industry player, Anthony F. Santos, will take control of three Vegas properties for which the company acts as landlord.

The Nevada Gaming Commission gave the veteran the final go-ahead to take over operations at the Las Vegas Club Hotel, the Western Hotel and Casino, and the Plaza Hotel and Casino—all of which are under great financial pressure—under the condition that Santos keeps the interests of Tamares completely separate from his new position as operator of the three struggling casinos.

Despite the longtime drop in downtown gaming revenue, Santos has high hopes for the properties. The Plaza will become the Union Plaza once a $20 million dollar loan pulls through and renovations—including upgrades to rooms, slots and restaurants—is completed. The overhaul will take at least a year.

Sat, Aug 28, 2010

Rhonda Cohen, general manager and COO of MotorCity Casino-Hotel in Detroit, MI has retired this month after eleven years with the company. Cohen was part of the founding team at MotorCity, starting as director of player development when the casino first opened in 1999.

Cohen stuck with MotorCity through various ownership changes and renovations, including a $300 million dollar transformation that added a 400-room hotel to the property. The COO has also witnessed the business increase monthly revenue by over $11 million since 2000. Cohen, who has acted as general manager for ten years, will not be immediately replaced. Her work will be distributed amongst the casino’s other executives.

Fri, Aug 27, 2010

Former president of the Sugarhouse Casino in Philadelphia, Robert D. Sheldon will become the new general manager of Hollywood Casino in Aurora, Illinois. Penn National Gaming made the announcement this week that Sheldon will replace current GM, Patt Medchill, who will gain a new role within the company and stay for special projects until he is given another position.

Medchill held the position of GM at Hollywood Casino for 16 years and will remain a key part of Penn National. He will be replaced by Sheldon pending regulatory approval.

“Bob is a proven industry executive and brings over three decades of management experience in both regional and destination gaming markets to Hollywood Casino Aurora,” John Finamore, Senior Vice President Regional Operations of Penn National Gaming commented in a press release. “His wealth of experience and accomplishments in all aspects of casino operations make him ideally suited to manage Hollywood Casino Aurora. Bob’s appointment reflects Penn National’s strategy to attract premier management talent for our regional properties.”

Fri, Aug 27, 2010

Tribal casino IT veteran Dwight Terrance joined the Mille Lacs Band of Ojibwe’s Corporate Commission as its new chief innovation officer this summer. The TribalNet and IGT Customer Advisory Board member is an East Coast transplant and will become part of the company that owns Grand Casino Mille Lacs and Grand Casino Hinckley in Onamia, Minnesota.

Terrance, a member of the St. Regis Mohawk tribe, comes to his new role with the Corporate Commission after eight years heading the IT department at Akwesasne Mohawk Casino in New York and holding similar positions at Mohegan Sun and Foxwoods Resort & Casino.

Prior to gaming, Terrance graduated with a business administration degree emphasis in computer science from SUNY Buffalo. He taught both undergraduate and graduate classes at the University of New Haven in Connecticut.

Fri, Aug 27, 2010

Galaxy Gaming, a leading producer of electronic side-bet products for table games, announced that it has received authorization from the Pennsylvania Gaming Control Board to install its products in Pennsylvania casinos. The firm’s products and systems either have been or will soon be submitted by sponsoring casinos to the board for approval.

“The demand for our products has been incredible,” said Dean Barnett, regional sales manager for Galaxy Gaming. “I have been in contact with all nine casinos in Pennsylvania and so far, eight of the nine have requested our side bet Lucky Ladies, representing about 150 tables. I would estimate the majority of those to go live within 60 days. And that was for just one of our games! We expect more of our games to be approved shortly which should result in additional placements.”

“First of all, I want to thank the Pennsylvania Gaming Control Board and particularly their professional and cordial staff for their supportive cooperation during this process,” added Robert Saucier, CEO of Galaxy Gaming. “With their nine casinos geographically spread throughout the state, Pennsylvania is already considered a ‘mid-major’ gaming market. But with its immense population base, the planned expansion and a supportive state government, it possesses the opportunity to grow into a major gaming market.”

Fri, Aug 27, 2010

System supplier Table Trac, Inc. announced that the Navajo Nation has selected the company to supply a comprehensive casino management system for its new Flowing Water Navajo Casino in Chinle, Arizona. Flowing Water is the first of six casinos the tribe is opening in Arizona and New Mexico.

The tribe selected the company’s Casino Trac management system, which provides a scalable, open-architecture slot management system that can operate across multiple properties.

Table Trac also will provide an array of system and technology solutions for Flowing Water, including an integrated solution that will allow the casino to manage its Class II game ticketing and promotions under a consolidated system approach. Table Trac will be providing the Navajo Nation with a complete suite of casino management products, including slot accounting; patron management and player tracking, along with Promo Trac, Table Trac’s marketing and promotion solution that enables casinos to convert points and promotional dollars to playable credits.

“Table Trac is committed to providing the Navajo Nation with a state-of-the-art casino management system that bridges the entire spectrum of gaming machine manufacturers and communications protocols,” said Chad Hoehne, Table Trac’s president. “We look forward to building a long-term partnership with the Navajo Nation, helping them as they move their business into future phases of growth.”

Fri, Aug 27, 2010

Novomatic Gaming Spain announced that Grup Peralada has installed the Novo Flying Baccarat system at its flagship property, Casino Barcelona. The system is based on the server-based Novo Unity multi-player platform. Especially for its Asian patrons, Casino Barcelona furnished a unique room, with exquisite, authentic Chinese decoration, providing the perfect setting for the new electronic baccarat game.

The layout of Novomatic Baccarat has been completely developed in Chinese style in order to ideally meet the taste and preferences particularly of Asian guests.

The fully animated Novo Flying Baccarat at Casino Barcelona comprises eight Novo-Vision Slant Top II terminals and two giant plasma displays provide information to its guests. The electronic baccarat offers individual language selection options on each terminal with broad choice of international languages including Chinese.

“It is great to see the excellent performance of our multiplayer products at Casino Barcelona, said Jordi Pedragosa, sales director of Novomatic Gaming Spain. “Based on their popularity with the guests, casino management has repeatedly decided to pioneer the Spanish market with electronic gaming novelties and in so doing continued to further extend its offering of Novomatic gaming equipment throughout the years. Our business relationship with Casino Barcelona is excellent and we are confident that we will be able to offer innovative and profitable gaming solutions as well as the very best product advice to our customer.”

Fri, Aug 27, 2010

Atronic International announced the launch of its King Kong Cash wide-area progressive slot in casinos in three cities in Chile. The launch marks the first wide-area progressive jackpot in the country, and in South America, according to the company.

The King Kong Cash multi-level WAP was developed by Atronic’s Systems Division for the Dreams Group, which is the first operator in Chile offering the multi-site jackpot. The jackpot was launched in the cities of Temuco, Valdivia and Punta Arenas. The starting value for the top jackpot level in the nationwide jackpot is over US$135,899. The remaining three jackpot levels will be in-house. The latest versions of Atronic’s King Kong Cash titles have been installed on the new link.

Atronic’s Systems Division has provided the Galaxis system solution driving the WAP. It is a modular system solution consisting of the various “Star Modules” for different applications in the casino.

“Dreams is the first WAP operator in Chile and in South America, which demonstrates once again our leadership in this industry and allows us to offer the highest wins ever seen in Chile to our clients,” said Jaime Wilhelm, general manager of Dreams Hotel Casino & Spa.

“King Kong Cash has seen extreme success all over the world,” said Jessica Luna, Atronic’s sales director for Latin America. “Atronic is very proud to introduce this multi-level jackpot product into a nationwide WAP environment which at the same time marks the very first WAP for Chile and South America. This project demonstrates once again that Atronic offers the complete range of gaming products and services such as attractive game titles, a special WAP mathematic model and the technology to control and administrate the WAP through our Systems Division.”

Fri, Aug 27, 2010

Just as longtime COO Rhonda Cohen retired from Detroit’s MotorCity Casino Hotel, the venue announced it received the 2010 Pinnacle Award for Hotels.

The highly regarded hospitality award is voted on by meeting planners nationwide and is meant to recognize establishments with outstanding service to meeting guests.

“The Pinnacle Award is one of the hotel industry's most respected awards, and distinguishes us as one of the best meeting hotels in the United States. This distinction will continue to motivate us to always exceed the expectations of our guests,” Vice President of Hotel Operations Randy Villareal commented in a press release.

Along with the Pinnacle Award, MotorCity also received AAA’s prestigious Four Diamond Hotel rating, an award that the hotel’s Iridescence restaurant had won the past eight years.