STATESIDE
Stateside T
he dog days of summer not only meant high temperatures, but also a heated political and economic climate in Washington. Thanks in part to federal dysfunction, publicly traded casino
companies, like other industries, faced the stock market’s upheaval. Forget the statistics…these corporations represent real employees and shareholders who trust in the company’s profitability. For example, since last year, Wynn Resorts stock
has seesawed over $100 from its highest to lowest close. Not happy, iconic casino mogul Steve Wynn caused a stir during his July investor conference call. Calling himself a “Democratic businessman” who
This time Wynn criticized Obama directly, calling him “the greatest wet blanket to business, progress and job creation in my lifetime.”
consistently supports both Democratic and Republican candidates, Wynn publicly blasted President Obama’s administration for a second year. Last summer, Wynn accused the White House of vilifying job creators. This time Wynn criticized Obama directly, calling him “the greatest wet blanket to business, progress and job creation in my lifetime.” Wynn claimed his customers and colleagues “are frightened of this administration…everybody complains about how much money is on the side in America.” Wynn also bashed Washington’s actions for
preventing him from hiring 10,000 new people and indirectly creating another 20,000 jobs in Las Vegas. For months, Nevada has ranked among the highest unemployment and home foreclosure rates in the U.S. Wynn’s comments included: “And those of us who
have business opportunities and the capital to do it are going to sit in fear of the president. And a lot of people don’t want to say that…they’ll say, ‘God, don’t be attacking Obama.’ Well, this is Obama’s deal, and it’s Obama that’s responsible for this fear in America…and until he’s gone, everybody’s going to be sitting on their thumbs…Obama keeps making speeches about redistribution, and maybe we ought to do something to businesses that don’t invest, they’re holding too much money. We haven’t heard that kind of talk except from pure socialists. Everybody’s afraid of the government and there’s no need soft peddling it…it is the truth.” How’s that for strong words. Wynn also warned a televised political focus group of
stagnant hiring numbers. He predicted that once Obamacare – the new healthcare law – fully kicks in, its stifling regulations and mandates will kill job creation. When Steve Wynn talks, casino people pay
attention. They also listen to Las Vegas Sands Corp Chairman/CEO Sheldon Adelson and Donald Trump, real estate and former gaming executive, who voice
10 SEPTEMBER 2011
Sharon Harris talks policy – as does Steve Wynn
many of the same complaints. Closer to home, I have spoken to many Pennsylvania and New Jersey gaming suppliers. They also argue that Washington’s current policies undermine job growth.
Wouldn’t we all benefit if just one or two of the people
atop Washington’s political ladder, or those advising them, had actually experienced one week in private industry? If they learned first-hand of the struggles businesses face to earn a dollar, they’d wise up and pass pro-entrepreneurial and small business legislation. Speaking of gaming icons, I was saddened to learn of former MGM CEO Terry Lanni’s passing. He lost his battle with cancer on July 14 at age 68. After retiring in late 2008, Lanni became ill in 2009. The industry paid a deserved tribute to him in huge numbers. During his 13-year tenure, Lanni steered MGM
from a one-casino operation to a luxury conglomerate of 17 locations in four U.S. states and Macau. MGM’s 10 Las Vegas Strip megaresorts dominate the landscape, and Lanni envisioned MGM’s unprecedented $8.5 billion CityCenter project. Lanni earlier served 18 years as president of Caesars
World. He joked about staying one night at the 11-year- old Howard Johnson’s Regency Motor Hotel in Atlantic City, during the late 1970s, while scouting sites for a new casino. The next morning, Lanni requested a move to the best hotel in town, only to learn that the Howard Johnson’s was it. Opening Caesars Boardwalk Regency in June 1979 changed that. I contacted Lanni following Hurricane Katrina in
2005. I was reporting on the recovery efforts along the Mississippi Gulf Coast. He returned my call, leaving his personal California number on my voicemail. During our one and only conversation, Lanni was so pleasant you would have thought we were friends. He described his initial post-Katrina drive towards
MGM’s gorgeous Beau Rivage, more clearly viewing the horrific damage as he approached. Yet, under his direction, MGM paid everyone for months, and the Beau Rivage reopened on Katrina’s first anniversary in August 2006. Lanni was calm, confident and smart. I appreciated the time he took to speak with me. I kept that message for three years, in case I needed to call him again. After his retirement, I finally erased it. Soon after his death, I revisited the Mississippi Gulf
Coast for the first time in 10 years. It was poignant to stay at the Beau Rivage, remembering Lanni’s influence. He certainly left his mark. Look for my report on the Gulf Coast recovery next month for our G2E issue.
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