AN INTERESTING CHOICE OF PARTNER PLANNING A CASINO FOR LAS VEGAS

Implications: Quite frankly, I find no fault with James Packer keeping the Ho family in his corner. It might be a bit more interesting at licensing with Lawrence Ho, son of the famous Stanley Ho, of Macau casino lure. It has been a past reason for MGM to go before the board when they partnered with Pansy Ho for their Macau venture. My guess would be that James reputation would certainly carry the day and would bring influence on Nevada Gaming Commission. I don't look for any pink slips in this deal - it will probably be passed with not much fanfare.

Analysis: The property in question that the Packer's plan to develop is the land where the Wet & Wild water park stood for many years. It is located on the east side of the strip and on the north end close to the Sahara Hotel. It's time that this property is going to be developed. Boyds Echelon Place will be across the street. MGM just purchased 26 acres just down the street and controls 100 acres they plan to develop in the very near future. There is lots going on now on the north portion of the strip -  a area that not so long ago was not considered by many as the cream parcels. Look what a little movement can do. It has made investors and hotel developers take a second and third look. It will help put a new face on the north strip and a much needed uplift. There could really be no significant push to connect Las Vegas Boulevard (The Strip) to the downtown area without the investment from these different companies. Steve Wynn was the first of the Big Guys to see the benefit of a shove north with his Wynn Resort and the property he now has under construction on the same piece of land. Donald Trump has finally entered the Las Vegas market and has built two high rises behind the New Frontier. I did report in a previous article that the Frontier was just sold to an Israeli group that works out of New York. So, all in all it seem as though the Las Vegas casino market just keeps on growing - when will the slow down come - when there is not one piece of land left to develop. 

There are still a few properties on the north end that are in need of some serious work. The three in question are the Sahara, Riviera and the Frontier. To refresh your memory, the Sahara was just recently purchased by a California group that plans some face lifting. They are saying that they wish to keep some of the old Vegas alive and well on the strip. My feeling is, that they really don't have the funds at hand to take the property down and develop a new hotel and casino. I don't think they can survive the way they now are operating this once terrific property. The Riviera is on the block, that is, if they are able to stop the feuding between the stock holders and the board of directors. They have very different views on what and how the property should be sold. The last of the monsters is the Frontier - this property will be torn down almost as soon as the sale is finalized and licensing is completed. That has been announced by the future new owners.

James Packer, son of the famous Kerry Packer who passed away recently, is now head of the Packer Business clan. He is said to have all the tools needed to conclude this deal in Las Vegas. Remember, he is the person that purchased the remaining licence from the Wynn organization to be able to build in Macau. He is a very significant force and will be a leader in this extremely valuable Las Vegas Hotel and casino industry. It's is a good thing for Las Vegas to have so many new people willing to invest small and large fortunes in this great city. We will grow as long as we maintain our place in the gaming and resort industry . Las Vegas is a very special business area and there are no signs of a slow down or a backing off of investment funds coming into this state. A very enviable position to be in - will it some day reach it's capacity - probably, but not in the near future - it's much to dynamic for that to happen..................