News Round-up(10/2/2024)

 Wars and rumors of wars.......

Saying the quiet part out loud. - It's never been about stopping climate change. It's always been about a redistribution of income from wealthy nations to NGOs and other quasi-governmental firms who will then tell the poor what to do.

That's quite the increase. When you  have elected leaders who truly believe that property ownership is theft from the government then you get results such as these.  If you don't already have a plan for an exit strategy out of Harris County you should start planning one.

As a matter of fact, a Texas exit strategy might not be a bad idea. The problem, and their are many, with Texas Democrats right now is that they have been out of power for so long that they are angry, and are going to overreach and are going to make life miserable.  The best thing for Texas right now would be some balance. I do not think we're going to get that, and I think the reversal is going to be stunning. Mostly because of a lack of adults in any room in government.

The biggest news story people are not paying enough attention to. This could be a big deal. In large part because the head of the union appears to be a low-functioning idiot who cannot even remember his 3 main talking points without having people remind him of what they are. I don't begrudge them their pay requests, but fighting against technological upgrades is akin to an old man hollering at the clouds. For this to get resolved the union is going to have to appoint a leader who can speak into a microphone without spitting on the first three rows.

Did you watch the VP debate last night? I did not. Nor did I watch either of the two Presidential debates. Kamala is a tool, Trump is a narcissist. No matter who wins, America loses.

BadScience People can say whatever they want to say when there are no repercussions. 

Will the last business to leave California please turn off the lights? The problem with government by boogeyman is that you, eventually, will run out of boogeymen to blame all of your problems on.  Eventually the people will look to you as the culprit.  Of course, by then they're probably too poor and there are no jobs left to matter anyway.

I really hope that this is the last we hear of Anna Delvey

RIP Dikembe Mutombo One of the great Basketall big men and ambassador's of all time.  And one helluva commercial star.

RIP Pete Rose. One of the most controversial baseball figures of all time. Both one of the greatest hitters and, apparently, one of the worst betters to ever grace the game.  In an age where games are sponsored by FanDuel and DraftKings it's time to relent and put the man in the Hall of Fame. at this point the hypocrisy is through the roof.

And finally...

One of the reason's we continue argue about climate change is that the arguments of the climate warriors are based on lies and logical fallacies. No one involved in carbon capture is suggesting that it is a silver bullet that will 100% solve the problem, yet that is what the climate warriors are attesting. 

In fact, the world HAS made some progress on carbon reduction and, China, India and some other nations notwithstanding, the Western World has taken steps to reduce their carbon omissions. But the climate warriors want stupid goals like "zero carbon now" and "just stop oil" which would plunge the world into economic chaos, kill Billions, and knock us directly back to the dark ages. Perhaps they do want a return to the days with the Catholic Church was the font of all knowledge and truth?  Of course, this time around it would not be the Church, it would be the United Nations.

Think about how scary that thought is.

F1 Hates You. (Yes, you.)

 'Las Vegas Biggest Event in Years was a Disaster'

And while I think "Disaster" is a bit of a reach it certainly was not the grand slam that organizers were hoping for.

Yes, the actual race was, by F1 standards, pretty good.  There were actual lead-changes and some overtaking for a change. Typically F1 races are decided by qualifying and the cars, too big for the older tracks they run on, pretty much just go around with the leader (previously Lewis Hamilton but now Max Verstappen) pulling away and winning by several seconds. While it might be among the most glamorous, and most expensive, of the racing circuits, in terms of actual racing it is the absolute worst. F1 is terrible.

But the television broadcast was a pretty thing. (Full disclosure, I wanted none to do with actually being in Las Vegas for this event). The dynamic of the cars going full-chat down the Strip and the really cool Sphere in the background was awesome. Martin Brundle's grid-walk had plenty of rich, famous and other cool stuff, just like they wanted.

I even hear that the high-rollers showed up on race night, and casino employees in the tip pool did quite well. So the very rich Euro-trash showed up on their private jets as well.  Good deal for all.

In the end, that's all that F1 really cares about. That they had stars and the wealthy at the race and on TV providing the whole shoddy mess with an air of faux-sophistication. In some ways, that's VERY modern Las Vegas Strip.

Because, and this is important, just like the employees and owners of the Las Vegas Strip casinos, F1 hates you (and me) the common folk. 

Oh sure, they NEED us, but they hate us. They want our attention and our money and (important for F1) our eyes on televisions but, if they had their druthers, they would really prefer if you'd just take the table scraps that they give you, fork over your money for little return and then politely STFU.

Already there are social media chatter from Las Vegas Strip employees that they would really prefer if just Strip employees were allowed to comment on things and the visitors just be silent. The idea that the Strip employee is the center of Las Vegas, and not the paying customer, is an issue that some cruise ships are dealing with and it's not something good to get a toehold in an area that relies on customer service.

Mrs. TPM and I have been to Las Vegas hundreds of times. We've been on the Strip for many of those. we abandoned the Strip a few years back because we noticed these conditions creeping in but we went back on our last trip to check out a VGK game.

The service that we received at NYNY Center bar was amongst the rudest we've ever experienced. It was very cleat that were were imposing on the bartender's time rather than being the reason for it.

And that's exactly how F1 views the general public. A problem that has to be tolerated, not an opportunity to make new fans. You're a nuisance to them, something they have to put up with in order to take your money from you. They kicked the public out of the viewing areas ahead of Free Practice 2 (after FP1 was cancelled after 8 minutes and everything thrown into a mess by Carlos Sainz' car getting chopped up like scallions in a Gordon Ramsey restaurant by a loose drain cover.) simply because the race organizers did not want to pay overtime to the employees they hired to cater the event.

They did their level best to block the view of any location where people might be able to glimpse a second of race action without paying for a ticket, and (by many accounts) their private security service was screaming at people walking around the Strip during the race. If you weren't walking fast enough, you got screamed at.

Here's the thing though.  The race seemed to do OK. Probably nowhere near the (*snickers*) $1.3B economic impact that was predicted, but well enough to ensure that, next year, all of this happens again, and again and again for the next nine years. On race night, the grand stands were full, Shaq and Brad Pitt were on Pit Lane telling everyone how marvelous things were, Max Verstappen (the race winner and the most unlikable champion of this generation) even put on an Elvis inspired racing suit after weeks of saying the whole thing was a sham, that he hated Las Vegas, and would just skip the whole mess were it up to him.

Now, the checkered flag has been waved, the teams have moved on to their next, meaningless, race (the driver's and all-important constructor's title having long been decided) and the Las Vegas Convention and Visitor's Bureau is warning people that it will take "at least" 8 weeks to tear everything down.

Looking at my calendar that means somewhere around mid-January. Which means that F1 could cock-up the New Year's Strip fireworks as well.

From that sense F1 Las Vegas is peak Corporate Vegas.  Enjoy.

Las Vegas: Dear Ceasars and MGM, it's not me, it's you.

For a while now, on this blog and other places, I've been bemoaning the continual decline of a majority of the casinos on the Las Vegas Strip. Particularly I've been going on quite a bit about MGM and Caesars properties.

MGM properties are nice enough, pretty things to look at and they have tons of dining and entertainment options that are good, their rooms are of good quality but their gambling is just this side of horrific.

Caesars lost me a while back.  Once they eighty-sixed TAG Sports Bar from the LINQ my relationship with them fizzled. As a matter of fact, I haven't played but just a little in any Caesars property in the last year. I haven't stayed as their guest in just over two years.  Their rooms are thread-bare, and worn around the edges, their gambling is just the other side of horrific and you REALLY get the sense that they would turn you upside down to shake out any loose change that might be in your pockets prior to you leaving if they could get away with it.

Yesterday, on the Twitters, screen-shots were shared showing that they will now charge you $75 for the sin of placing a personal item in their in-room mini-bar.  Of course, they offer no other refrigerator for your use, so it's warm water for you then.

Then, I got home from work and, lo and behold, an unexpected tiny offer arrived in my Inbox from Treasure Island.  Nothing big, two free nights Mon-Thurs with $45 in free play, a typical offer for someone who has "dropped in" on occasion and blown a couple of hundred dollars in their casino.

But, you know what? It's better than the offer I got from MLife which was based on approximately $25K coin-in average over the last few stays and it reminded me that staying at an MGM or Caesars property is probably not the best choice for someone who gives a shite about their gambling budget etc.

I LIKE TI. I have a soft sport in my heart for the old girl because it was the first casino that the wife and I visited on our first trip to Vegas together. Back then I thought it was the biggest place in the world and the nicest "hotel" I had ever been in.

Long story short, I'm changing my reservation. 

I've decided that it's stupid to continue to do business with companies who don't value your business, but who only view you as someone to extract as much money from as possible without providing anything of value in return.

It's for much the same reason that I've boycotted all Stronach Group-owned horse racing tracks, a decision that will make me a spectator in this year's 144th Preakness Stakes.

So MGM and Caesars are out, done, Finito Santiago. I've cancelled a planned stay at the Luxor and am spending those days at TI.  I'll head over to Venetian and Palazzo, spend some time at the Strat and SLS, drink too much at the Cosmo.

Sure, I'll still walk through Bellagio and look at the conservatory, and I'll still watch the fountains, until MGM starts charging for those somehow, but I'll neither gamble or stay at an MGM or Caesars property until such time that they understand the value of customer service and stop making business decisions that hurt the customer and (to be honest) their workers.

Las Vegas: Are comped drinks going the way of the Dodo?

Could be. On the Strip at least.

If you're not familiar with Vital Vegas, he's a Las Vegas resident, and employee of the Fremont Street Experience, who has a knack for getting inside information and scooping many major media outlets on Vegas news.

The program he's referring to (MGM 2020) has been in the media a LOT lately because it's led to early retirement for many top MGM execs. Under the radar however it's also leading to staffing cuts, specifically with the cocktail staff. (There's a reason the unions dug-in on automation in the last stand-off).

The idea is that "drink kiosks" will soon replace on-floor cocktail servers to a large degree and that the age of getting a "comped" (not free) drink while you're gambling will soon be a thing of the past. Not for your larger players, obviously, but for the rank-and-file penny slot player, also known as the most profitable players for casinos.

This is just another one of a thousand cuts that the average Las Vegas Strip casino patron is being asked to endure. From ever-increasing resort fees to paid parking to CNF fees (which add nothing of value) to the worst odds in the country, to sub-par customer service, to deteriorating properties and every price everywhere increasing hand over fist, the Las Vegas Strip is losing any advantage that it had over local, even tribal, casinos.

It's very clear that the public is already noticing.  Even during good economic times visitation in Las Vegas was down in 2018, for the 2nd consecutive year. Major trade groups are asking their convention operators to find different venues, the Rugby 7's, traditionally held in Las Vegas, may have played their last tournament there. The fact is that Las Vegas is becoming too expensive, and too greedy, to support tourism from the very people they are targeting.

While it's true that "comped" drinks were never free, the fact is relatively cheap food and drinks are what put Las Vegas on the map. The rush to faux luxury has been as foolhardy as has the introduction of 6:5 Blackjack or 3-zero Roulette. It's a travesty that doesn't play in the rest of the country, and it's destroying Las Vegas reputation as the Gambling capitol of the world.

The biggest risk is from California, whose residents now have access to Las Vegas style casino resorts just minutes from their homes. The draw in Vegas has always been comped rooms, drinks and food that differentiate it from the locals. Take that away and there's little reason for California residents to sit in heat and traffic for a weekend. Just visit your local and be done with it.

Another irony: Nevada gambling "handle" is rising, the Las Vegas Strip is seeing huge declines. People are starting to notice. They will certainly start to notice if MGM and Caesars (who is in the process of laying off 13% of it's cocktail staff) go after the comped drinks.

The loss of free parking was a kick in the gut to the locals, the loss of comped drinks is a kick in the gut to all patrons. I don't know about you but I'm getting tired of having MGM and CET shove two big middle-fingers in my face and then ask for my continued loyalty.  As much as I enjoy the Luxor pool in the Summer, it's getting close to the point that I look the lion in the eye and tell him to Eff off.

Fremont Street anyone?

Las Vegas: At the Cosmopolitan, you're now paying for other's parking.

I found this little bit of news from the Cosmopolitan to be interesting:

Cosmopolitan to include parking in resort fees. Best of Las Vegas

Starting Jan. 1, The Cosmopolitan no longer will charge guests separately for parking and valet service.

Parking will be among the amenities incorporated into the resort fee, which will rise from $35 to $39.

Parking and valet currently cost $10 and $18 a day, and the change will result in $6 to $14 savings for such guests. Las Vegas locals will continue to receive the first hour of parking free of charge.

If you're from Southern California and drive to Las Vegas this is a great deal. If you're from pretty much anywhere else and fly to Las Vegas, and then take a taxi, Uber/Lyft or private car service to  The Cosmopolitan you're getting screwed.  Because you're now paying for other's parking expenses despite having none of your own.

You're literally paying for an amenity you're not using, and will never use. It's a charge on your bill that you a.) cannot get removed and b.) will receive no benefit for.

The imposition of parking fees at Strip hotels was one of the most controversial devaluations of the customer experience to date. What the Cosmopolitan has done is ensure that everyone must bear the brunt of these charges regardless of whether they're driving or not. In effect, this is a big middle-finger to The Cosmopolitan to guests who are arriving via McCarron Airport and NOT renting a car.

The article states that around a quarter of Strip guests some in from Southern California. That means that 3 out of 4 people potentially staying at The Cosmopolitan are NOT from there, and may not be driving.  I would put the number closer to 2 out of 3 since not all drivers come from Southern Cali.  that still means that The Cosmopolitan is going to experience a net increase in revenue, despite raising the fee at a lower rate than the parking.  They're going to collect a lower fee from more customers, a fee that is going to drive value down for a majority of customers, and already the local Vegas "tourism" sites are advertising this as as "win" for consumers?

This is a cash grab by Blackstone Management Group pure and simple.  And this is a shame. While pricey the Cosmopolitan is one of the better Strip casinos still, offering slightly improved odds, great amenities and comfortable lodging. Outside of TI it really is the last option on the Strip for the serious gamer.

That they would take such a customer unfriendly approach such as this is discouraging.

Yes, it's not a lot of money, but it's just a worse case of nickel & dime charges that each customer must bear. Resort fees, CNF fees, charges for high-speed wi-fi, poorer gaming odds. The molehill is becoming a mountain.

Marketing push aside, this is only increasing the size of the mountain, don't believe the hype to the contrary.

Las Vegas Labor Negotiations: It's all hanging on 1.3%

According to the Las Vegas Review-Journal (also known as "Sheldon's Rag") whether or not there will be a general labor strike in June is down to a 1.3% difference in pay increases.

Las Vegas Casinos, Union, negotiating pay raises for workers. Las Vegas Review-Journal

In a statement Wednesday, Culinary Local 226 and Bartenders Local 165 said they are seeking an average annual increase of 4 percent over the next five years in workers’ wages and benefits, such as health care and pensions.
...
The unions said MGM Resorts and Caesars are offering an average annual increase of about 2.7 percent. The two companies operate 18 of the resorts impacted by the talks, and their settlement with the union would set the standard for the remaining operators.

In the middle, the part that I omitted (go read the entire article) the newspaper chooses to make an issue of CEO compensation.  This is standard boilerplate for today's modern journalists (NARRATIVE!!!) and it's a really odd play for Sheldon to make.  What happens here will effect his negotiations later down the line after all.

It is a little bit telling that the union "expert" that the LVRJ quoted admitted that "4% was probably too high" without admitting that the casino's opening salvo of 2% was probably too low.  I would imagine this gets settled at 3% and all of the noise surrounding panic buttons and other issues fade away.

At the end of the day, it's ALWAYS about the money.

And there are no good actors here.  Don't kid yourself.

The unions want bigger increases to pad their slush-funds in order to appease those whose patronage is tied to investments made by the pension funds, while there is nothing sympathetic about casino management companies. They have not been acting as prudent operators of late choosing to throttle the customer in return for short term stock bumps.

While yesterday's news that McCarron (LAS) recorded it's busiest April on record might seem to indicate that customer's are bending over and asking "Please sir, may I have another" the fact is airport traffic does not mean that STRIP occupancy is increased.  We'll see those numbers soon.

Granted, after the horrific events of October 1st things are starting to return to some sense of normalcy, the rebound from the tragedy is masking deeper problems that should start to manifest themselves in the later quarters of this year, and into next year.

I've already written about why I think a strike would be devastating to Las Vegas and that's precisely the reason I don't think one will happen.  A LOT of what the union is doing here is saber-rattling, it's the only negotiation tool they have.  In a right to work state even breaking a picket line is not the death knell for one's career that it is in states with different labor laws.

And on one, really, wants a strike. I don't believe that the culinary union workers who voted to authorize one really thought one would happen. I don't think the union leaders want to see their cash reserves drained, and I know the casinos don't want to have their contingency plans put to the test.

My feeling is that a deal gets done today, probably in the wee hours. At least between CET, MGM and the union, which will lead to all of the other dominoes falling.

At that point, possibly, maybe someone will have the smarts to listen to Wolfgang Puck who seems to be one of the few people remembering that Las Vegas is in the customer service business.

Vegas and Fees: Gutting the Golden Goose.

These days it seems that a lot of companies whose business is ostensibly customer service, have decided that bleeding their core business dry is a solid path forward.

I give you the "concession and franchise fee" or CNF in shorthand. These are insipid fees often added on at bars and restaurants, that add 4.7% to the price of the meal, or drinks, and offer the customer absolutely nothing in return.

In short, it's pure profit for the establishment owner above and beyond the prices listed on the menu.

Unlike the horrid resort fees, which can often cost more than the price of the room and provide customers with ridiculous "amenities" such as "free" wi-fi, local call (seriously?), access to the fitness center etc. CNF fees are charged and provide.....nothing.

Nor should these be confused with a "live entertainment fee" (sometimes called "tax" which is laughable) which often goes to the payment of the live entertainment in question, these fees provide absolutely no benefit to the customer, and should be viewed as a good reason to avoid the properties in question.

Which properties are these?  Per the linked article above (from Vegas news site VitalVegas.com) the following properties charge CNF fees of 4.7%

 - Cabo Wabo Cantina @ Planet Hollywood
 - Rhumbar @ Mirage
 - Hexx @ Paris
 - Beer Park @ Paris
 - Alexxa's Bar @ Paris
 - Chayo Mexican Kitchen & Tequila Bar @ Linq Promenade.

Do yourself, and your pocketbook a favor and refuse to patronize any of these establishments, or any other establishments in the future, who charge this fee. Failure to do so will result in this CNF fee becoming the equivalent of the resort fee, widely implemented and almost impossible to go without.

As I've stated in the past my belief is that these fees are not "fees" in the truest sense of the word, since they cannot be reasonably avoided, but should be reflected as increases to the menu price.  I feel the same about hotel resort fees, and many airline fees. These are listed separately as "fees" to allow the main prices to be unrealistically reduced, showing a price that the customer cannot reasonably expect to pay.

The important thing here is that customers, not the resorts and especially not government, have the power to change this by refusing to patronize establishments that charge this.  Not everyone will, of course, and many will pay the fee, despite it showing on their bill, without even realizing it's there. Unfortunately, most travelers don't do this so their taste of Vegas is bitter due to higher than expected bills.

True, there are some recent rumblings of customers complaining (a lot) and getting these CNF fees removed from their bills but most won't do that. Nor will they take simple steps like purchasing an Ethernet cable and $20 router to get free in-room wi-fi without having to pay the resort fee.

So, not everyone is going to stop patronizing these establishments but if enough people will then the message will be sent. Being angry and screaming and hollering through your keyboard online is not gong to cut it. Taking your money elsewhere will.

The city of Las Vegas has successfully reinvented itself 3 times over the years.  From railroad town to mob gambling town to corporate-owned gambling and entertainment mecca.  At the end of each of these iterations there was always a "dark decade" that preceded something new to come.  When the railroad strike occurred Vegas Floundered until the building of the Hoover Dam. When the Chicago Mob moved in Vegas floundered until the corporations set up shop.

We're now entering what I believe to be the last gasp of the current corporate model of operations in Vegas. While the mafia destroyed things with violence and crime the corporations are going to kill their golden goose through fees and stagnation.  Those of us who love Las Vegas are going to have to navigate some turbulent waters as the MBA wielding managers find ways to improve profits through more and more nickel and dime cuts to the customer instead of innovation.

When you're in the customer service business, intentionally hurting your number one revenue stream (through fees, tightened odds, increased prices, lower perks etc.) is the definition of business insanity/

A Culinary Union Strike Could Be Devastating to Las Vegas.

Yesterday 99% of culinary union members who voted, decided to vote 'yes' in favor of a potential strike.

I understand the reasoning behind this, in fact, I'm not unsympathetic to their claims. I agree that employees at casinos need stronger protections against workplace harassment and I'm on board with them wanting immigration protections as well. I also, somewhat, agree that the entire issue of technology has the potential to disrupt, if not transform, the labor force.

That said I hope it doesn't come to a strike.

And that's not just because I have a trip to Vegas planned in June.

Strikes in the customer service industry never have the intended effect. There are no winners. Customers, many of whom have planned Vegas excursions for a full year, are not going to want to hear excuses and reasoning from either the union or the resorts. What they're going to see are businesses that have no interest in providing them with the customer service that they advertised.

This is separate from whether or not their personal political preferences make them sympathetic to either the plight of the union or the side of the corporations.

Imagine planning a trip to a place all year. You get there, and there's no one to serve you a drink, no one to clean your room, no one to serve you food.  How would you feel?

To be honest, you'd be pissed. And don't give me your high-minded "I'd do OK because I support the unions" bullshit. If it's your vacation that's been disrupted you're going to be angry.

You're going to be angry at Las Vegas.   And you're going to be less likely to visit there in the future because of it.

Vegas is already taking a beating in the press and the forum of public opinion because of the casinos current plans to increase charges, fees and generally make things more of a pain without providing any additional benefits.  Attendance dropped for the last quarter for the first time in a few years.  Yes, the Las Vegas Visitors groups wrote it off as "shooting related" or "because of annual convention rotations" but the fact is less people are heading to Vegas because the value proposition is becoming less and less.

Besides a dizzying array of fees and upcharges that add nothing. there's also the sad fact that casino operators have decided to tighten the odds to a point that even the illusion of a chance is fading away. Of course, the casinos are still raking in money, because they're charging an avalanche of fees and putting price tags on things that used to be free, and are free in almost every other location. The Golden Nugget downtown is even charging for in-room coffee now.  I don't care who you are, that's ridiculous.

So, a person goes to Vegas, spends all of this money on resort fees, rooms (whose rates have increased as well) entertainment, 'entertainment charges' and what not and then they find out no one is there to serve them food or drinks, or provide room service.

What do you think their attitude toward Vegas is going to be going forward?

I've said before that, had I started visiting Vegas today, I would not fall in love with this Vegas. The Vegas that I'm infatuated with is long gone. The wife and I now have to go off-strip to find vestiges of the city we love. I can't imagine someone coming into town and finding the joy that we did in the face of corporate operation. I think that's, in large part, why you see Vegas entering another slump.

In the end a labor strike is nothing more than a lack of creativity on the part of both workers and management. The "technology" issue is evidence of that.  Casinos want to increase the use of technology to reduce staff and save costs, customer experience be damned. Workers want to wade into the pool and raise their hands and yell "STOP", as did King Canute to the rising tide,  when it comes to technology but it doesn't have to be that way.

How about if both sides consider a "retrain and retain" method of dealing with technology which allows casinos to implement technology in a manner that cuts costs and improves the customer experience while retraining staff to fill roles that also improve the customer experience?

And that's the biggest thing missing from all of these talks, any concern for the most important entity to both party, the people who are paying the money which allow for strong corporate profits and a strong employment market: The customer.

Once both sides lose track of that then a strike becomes possible. Once that happens Las Vegas could be facing a day where there are too few customers to continue the status quo.

It's possible the city is already heading that way and doesn't know it yet.  They might if this strike takes place.