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Caesars background check: Financial stability, the Russian mob, online gambling and a guy who ran up millions in gambling debts
By adamg on Wed, 10/23/2013 - 4:47pm
The state Gaming Commission today released a redacted copy of the 558-page investigative report that led Suffolk Downs to drop Caesars Entertainment as manager of its proposed casino last week.
In addition to concerns about possible Russian-mob ties to an investor in a company with which Caesars was doing business on a Nevada project and one Caesars executives past in Internet gambling, gaming inspectors said they were concerned that Caesars was too heavily leveraged with debt to survive another economic downtown.
And then there was the Watanabe matter:
The third significant issue involves Caesars’ conduct with respect to Terrance Watanabe, a high roller patron at Caesars Las Vegas properties who accrued millions of dollars in unpaid markers in 2006-2007. Watanabe was charged criminally for the unpaid debt, and he sued Caesars civilly, claiming Caesars encouraged him to gamble while intoxicated. The civil suit ultimately settled, and the criminal case was dismissed. The episode touches on numerous concerns, including the lengths to which casino operators will go to cater to high rollers and problem gaming."
East Boston voters decide Nov. 5 whether to let Suffolk Downs proceed with its application to the gaming commission for the $1-billion project.
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Comments
Grafton-on-Sea
And to think that many in Eastie think Massport a bad neighbor.
Yeesh. As the saying goes, "youse ain't seen nothin' yet!"
Every casino that exists, ever
"The episode touches on numerous concerns, including the lengths to which casino operators will go to cater to high rollers and problem gaming."
That's basically the bread-and-butter of the casino gambling industry. It's their business model: ply problem gamblers with low-value booze, buffets, and other freebies so they show up feeling like they won something, stack the deck against them (house always wins!), and then rake in the dough while they go into debt.
For example, I was given a very nice Krups food processor from a family friend, whose elderly mother is one of those seniors who buses it to Atlantic City regularly. The casions pile cheaply-comped stuff on granny (kitchen appliances, hotel rooms, unlimited buffets, bus tickets), and granny repays them by dumping her pension and Social Security checks into their coffers. The casino's ROI on this is incredible: they spend $50-$100 wholesale on perks, and get easily $2,000 in return.
My favorite part of the report
I wonder if things would be going better for them if they had used this strategy. If they would have gotten young families on their side with some fun, kid-friendly development they might have gotten a better reception than just trying to shove a slot barn on the neighborhood.
Two on casinos
1) If you play slot machines, you're a complete dope and I have no respect for what's left of your intelligence. It's a (expletive) computer THAT'S PROGRAMMED TO WIN A SET AMOUNT OF MONEY EACH DAY. You're better off going broke and dying off if you're convinced that putting $2,000 into a slot machine in a single casino visit is a worthwhile investment.
2) I almost respect the gaming commission for producing a 500-plus page report. Least for what we pay 'em, they're ostensibly doing something that resembles actual work.