"Derek Stevens keeps changing the face of Downtown Las Vegas"

lol. true. "every casino" is an exaggeration.

 

I am a little nervous about what he is going to do with the properties he bought. I preferred GG and Fitzgeralds. I do not like the loud vulgar music in those places amongst other things. OH well things change.

 

I would love to spend more time at GG and / or the D. if only they would cut the volume in half. and it would still be plenty loud. as it is now, I can only stay in the place for a few minutes.

 

What is the casino that Derek Stevens is going to build from the ground up (according to the article) ? Tear down Las Vegas Club and build a completely new casino in that spot?

 

It just has a project name right now, 18 Fremont.
http://vitalvegas.com/derek-stevens-buys-glitter-gulch-mermaids-and-la-bayou/

 

I think Derek can be described as a voice for downtown, since he is an operator that embraces the media and his clientele. He put's himself out there, so he is definitely an old school operator in the cloth of Jackie Gaughan or Benny Binnion.

In regards to development, I think the changes that Derek has done, that we have seen at Plaza, or DTG are just extensions of what has happened on the strip. I would argue that Laundry's upgrade of the Golden Nugget and the redevelopment of Lady Luck are really Face changing to downtown. You have properties that were top to bottom upgrades, elevated room quality, and innovated dinning ideas. Too bad that DTG has struggled being a block off Fremont, since it seems only the value conscious gambler will trek away from downtown.

Derek does deserve to be commended on the events center, since downtown now has the space to host events that will attract more visitors. They still have not hosted anything very high profile yet, example major concert headliner or festival. The strip still owns the monopoly on that. Still there are opportunities to pull in some niche events. Downtown still needs to grow nightlife, entertainment, and resort quality to siphon off strip tourists or more of the local market. Derek hasn't quite achieved any of the above, and he hasn't gained a monopoly on DT visitors. There's still a large percentage of us who completely skip The D and GG for Golden Nugget.

Time will tell if he will be the next Steve Wynn of downtown and set the trend and elevate downtown with his LVC redevelopment.

 

Both articles were promo pieces, not works of journalism. Give me a kenv, who tells it like it is.

 

Whenever I go to vegas I try to remember to bring a set of earplugs so I can visit the GG and the D. I used the earplugs once when I played at the D. Craps pit crew had a good laugh but one worker also said that he disliked the loud music also.

Actually I like downtown the way it is. I don't want to "stripify" downtown. I am more of a Boyd Hotel/Casino person. I like it mellow so I can hear myself think when I play the machines or the tables. I don't care about special events downtown, let them have it on the strip along with the traffic and added crowds IMHO. Downtown also has Fremont Street East for the night life. If they want to "grow" downtown they can move towards the Fremont Street East and grow east of that area. Lots of room to develop.

Derek Stevens is just one voice of downtown but does not represent all of downtown. Based on the GG and the D I doubt I would give his new hotel/casino much business since he seems to tailor his casinos more for the younger crowd IMHO.

DTG is struggling because they don't know how to run a hotel/casino. MSS is off the FSE area and is doing very nicely because they have an excellent business model to draw in the customers. Also have excellent pay tables and odds on the crap tables. They also have good restaurants that draw in the customers. DTG just doesn't know how to draw in the customers...and keep them there. True they did a nice remodel but they now need someone savvy with the business to bring in the crowd.

 

Completely agree on MSS and The Cal they have a solid marketing model and seem to have been able to survive holding a particular segment of the gambling market. DTG is different animal in they were not trying to adapt the DT model but were trying to attract a different demographic. I think they have gotten better at the marketing end, since offers for myself have gotten better and the quality of the property is more my taste. Service delivery is a whole different story.

The reality is these operators want to grow their revenue base and demographic. Having one focused on purely gaming an older gambler segment is a dying model. The new risk and capitalization requirements has made the free flow of money for casino resort development has dried up. Even Fremont east has seen its fair share of closed businesses. I think the re-gentrification experiment started by Tony Heish downtown las vegas project has finally cooled. Your not going to see commercial lenders taking the same risks they did from 2000 to 2007, or free spenders like Tony throwing $350 million around. I think any new development that happens downtown is going to be in the existing casino footprint. It took the strip 30 years for the building boom that took place in the 90's.

 

Interesting thought but I would also have to disagree. Gambling isn't a dying model and the DTG is a prime example of it. The place is never busy because it doesn't look like they cater to the gamblers. Yes, they do seem to cater to the "non gamblers" but other than the pool and the rooms themselves they really don't have much of anything to draw in those customers. No nightclubs and if anything, the restaurants and activities in the area would draw people into the DTG IMHO.

If you look at the other FSE casinos they try to do a mix of things to draw in crowds of all ages. Gaming for the older crowd and the "party" atmosphere to bring in the younger crowd, but also to have the younger crowd spend their money on the tables or machines or the lounges. From what I see the DTG offers nothing to bring in the crowd or spend their money IMHO.

Sam Boyd was a genius years ago when he made the decision to cater to the Hawaii market. Now his company is reaping the rewards because they have a steady stream of Hawaii customers bringing in money all year round. But then MSS also is busy because of their 20x odds on the crap tables, buffet and 777 restaurants so in addition to the Hawaii people they also bring in the other crowd. In order for DTG to be successful they need some kind of thing to draw in the customers and to get them to spend money while there.

This is JMHO and it can be debated about business plans and how to make DTG successful and there have been many discussions on that.

 

Demolition has started next to LVC:
http://vitalvegas.com/construction-begins-on-18-fremont-resort-world-almost-misses-it/

 

I would seriously doubt if Derek "strip-ify's" downtown. He seems like he gets it. A mix of good value gaming, upgraded/modern amenities with that smaller old-school Vegas feel. When I go to the mega strip resorts and the exorbitant fees, table minimums and the like, I dont feel like its the Vegas i got to know in the 90s/early 00's. And Fremont in the early 00's felt tired, and run down.. and in places it was scary.
I'm excited to see what he does with that new space where the LVC was. I think he would be shooting himself in the foot if he made the gaming bad, thats still why people ventdowntown. And the Event Center is a great addition to lure people down there. Its not set up for a huge mainstream event/show like Elton John and nor should it. It should have middle of the pack concerts and venues that will lure people downtown.

 

I have to disagree, Stevens is doing exactly what they are doing on the strip. Not with the table minimums but with the crowd. I'm over 50 and whenever I go into the D I have to hold my ears because the music is too loud. It seems like he wants to draw in the younger crowd (as on the strip) but seems to forget the older crowd that doesn't want the "party" atmosphere he offers. I'm sure that he will be doing the same with his new development, that's why I'm not too keen on what he is doing downtown.

People say that the 00's felt tired and run down but the economy didn't help. Many of us like downtown because we could grind it out at the tables, not worry about loud music, the party pits and bad pay tables. We enjoy the boyd properties because we don't have to worry about "stripified" resort fees or bringing in the "rowdy" younger crowds. Boyd is doing just fine with us old folk and I like it that way. I won't give Steven's properties much action because I don't enjoy playing there.

 

It behooves me that the target marketing crowd is the 25's to 35's year old crowds because they have the least expendable incomes where they are starting families, beginning to pay off student loans, buying homes, starting their careers and generating the lowest starting salaries probably in their life times due to entry level positions.

The older crowds 55's to 65's on the other hand have the most extra money to spend. Homes are paid off, student loans paid off, empty nesters where their adult offsprings have left the household, and the older crowds are probably earning the highest salaries of their lifetimes, if they haven't switched careers or been laid off or forced into retirement.

 

According to the Bureau of Labor Services (BLS), which provides the most detailed and accurate data we have on consumer expenditures lists this:
Discretionary Income by Age:
25-34 $19,237
55-64 $23,587
65-74 $14,268

So there is only about a 20% bump between his target audience and what you would consider "have the most extra money to spend". And the younger crowd is much more likely to buy their own drinks, pay for their own room and splurge on other services such as clubs and higher dining while at a casino resort. The 55+ crowd is more likely to get a comped drink, eat at a lower buffet and seek out a room that is free to them.

For what its worth all of the money is in the 35-44 demography. They are listed at 32,006. Nearly 40% more disposable income then your 55-64 crowd.

I'm in my late 30's and I wont gamble in a Stevens casino for the very same reason all of us other old funny duddies have listed. The Golden Nugget fits my need, but might be a little too stiff for the target audience the Stevens brothers are chasing. And the Gold Nugget is not the value driven property that the Boyd shoppers are interested in. I would group those in the 55+ crowd.

So like it or not, they are filling a need. If they chased the Under 25 crowd, those are the ones saddled with debit and earn less. They are listed at just $6137 per year. Thats roughly 500 bucks a month and not nearly enough cash to toss at a casino experience.

 

Not to sound like the old fart I am, but I tried the D twice and just couldn't take the music volume. I haven't stepped foot in there in at least 3 years.

 

Ha ha, yes, we are old farts. Once I even brought along earplugs to play at the D. The pit crew had a good laugh about it but one guy said that he gets a little irritated after working a shift with the loud music.

 

Yeah, I usually only play at The D during the day before they turn up the music. I don't like having to scream my bets to the craps dealers...even when I'm standing right next to them.

 

The Strip is moving away from a gaming focused business model, so DT will continue to pick up some of that segment. Unfortunately there is not enough volume or high margin in the 55 to 65 gaming customer.
Yes they may gamble more, but they are not paying for $15 cocktails, paying resort fees, spending in clubs, or dropping $200 to $300 for meals (maybe Hugo's or a nice steakhouse downtown). Unless someone can convience
them to only play games with a high house edge, they are a low profit segment. They are great to boosting occupancy rates during weekdays and slower times.

Gaming is a high margin / high risk revenue source since the player has a fair shot to swinging the house win. Compare that to Food and Beverage, Nightlife, and room revenue which has a fixed cost and margin. On demand pricing based
on demand can also increase return 5 to 8% in a quarter. So as much as we want to convince ourselves that gaming operations would make money hand over fist catering to value conscious gamblers, that business model does not
prove itself in today's climate. I don't see Derek Stevens sinking $400 million into at LVC redevelopment to focus purely on attracting on low to mid spend gaming customers. He needs to grow out his customer base and pull some
strip traffic to DT to make it profitable. I for one hopes he copies the success Landry's has had with GN. It would be great to have another higher end resort under the canopy.

 

I know this is a Vegas forum but from a construction standpoint I'd love to know how they are going to tackle the asbestos problem once they start tearing down the LVC.

Asbestos, anyone?