Indy Gaming: Sphere lights up the Strip, wows Vegas visitors and social media
Good morning, and welcome to the Indy Gaming newsletter, a weekly look at gaming matters nationally and internationally and how the events tie back to Nevada.
If a colleague or associate emailed this newsletter to you, please click here to sign up and receive your own copy of Indy Gaming in your inbox. - Howard Stutz
Developers of the $2.2 billion Sphere in Las Vegas planned to have the entertainment venue’s exterior operational by November in time for the Formula One Las Vegas Grand Prix.
Instead, the developers gave Las Vegas a memorable preview on July 4.
The holiday show illuminated the Las Vegas skyline with video and images for Strip visitors. The Sphere’s initial performance also lit up social media platforms. According to statistics on TikTok, the 10 most “liked” videos about the Sphere totaled 37.5 million views and 3.7 million likes.
The show began with a “Hello World” welcome followed by fireworks and stars and stripes animations. The Sphere transitioned through various visual content, including a giant eyeball, underwater scenes and a lunar surface.
Three days later, the Sphere’s exterior was transformed into a massive basketball for the start of the 2023 NBA Summer League in Las Vegas, with a “Welcome to Las Vegas” message to teams, players and fans marking the start of the annual event.
The Sphere’s exterior is 366 feet tall and 516 feet across at the center. The 580,000-square-foot, fully programmable LED screen is the largest on earth.
“The exosphere is more than a screen or a billboard,” said Sphere Senior Vice President Guy Barnett. “It is living architecture, and unlike anything that exists anywhere in the world.”
According to CNN, “It’s not easy to move the needle in a city that boasts the Bellagio’s dancing fountains, a half-scale replica of the Eiffel Tower [at Paris Las Vegas], the second-tallest observation tower in the Western Hemisphere [at the STRAT] and a beam of light [from the Luxor] that can be seen for hundreds of miles.”
David Hopkinson, president of venue operator MSG Sports, said the Sphere provides a “360-degree canvas for brand storytelling that will be seen around the world, offering our partners an unparalleled opportunity to become part of the greatest show on Earth.”
Plans call for the Sphere to display a range of daily artistic and advertising images.
The exosphere consists of approximately 1.2 million LED pucks, spaced eight inches apart. Each puck contains 48 individual LED diodes, with each diode capable of displaying 256 million different colors.
Sphere officials said the new shows and images will be displayed through the summer ahead of the venue’s official launch in late September with a residency by legendary rock band U2.
During the Las Vegas Grand Prix, the Sphere will have a prime position along the 3.9-mile race circuit to display race-related content and advertising.
Audience Engagement Manager Kristyn Leonard contributed to this report.
New Rio operator to unveil makeover of the off-Strip resort
Nearly three-and-a-half years after acquiring the Rio Hotel & Casino, New York-based Dreamscape Cos. will tell Nevada gaming regulators its plans for a multi-year redevelopment of the off-Strip resort.
The company, which paid Caesars Entertainment $516.3 million for the 2,500-room property in 2019, telegraphed some of its plans at the end of June when it hired four design firms — including Marnell Companies, the resort’s original developer and operator — to oversee the remake.
Dreamscape, which plans to use a portion of an $850 million financing package it secured in February toward redeveloping the 33-year-old Rio, is on the agenda for the Gaming Control Board’s Wednesday morning meeting in Carson City for licensing approval.
“The Rio has been an iconic property in Las Vegas for over two decades and we are thrilled to be working with such a talented and experienced team to bring our vision to life,” Dreamscape President Eric Birnbaum said in a statement. “We are confident that with the talent we have brought on board, from both an architectural and design element, we will create a new and differentiated experience for our guests to enjoy.”
Caesars has been operating the Rio under a lease agreement since selling the resort. Birnbaum said Dreamscape would take over the operations in the fall. In a February interview with The Nevada Independent, Birnbaum said Rio has a lot of “brand awareness” and Dreamscape is hoping to “reinvigorate the property and capitalize on the name.”
The design firms — Marnell, Fettle, Gianpiero Gaglione Interior Design and Lifescapes International — will oversee a full renovation of the Rio’s 2,500 rooms, 150,000-square-foot casino, 220,000-square-foot convention center and 5 acres pool and resort amenities.
Birnbaum said the Rio will also add new restaurants and bars.
A day before the design firm announcement, International Game Technology said it would provide Rio with a new casino management system.
One aspect of the Rio won’t change — Dreamscape last week extended the contract for Penn & Teller through the end of 2026. The magic and comedy duo has been performing at the Rio for 22 years.
“Penn & Teller are icons in entertainment, and their show continues to be a must-see for Las Vegas visitors. We are honored to have them as part of the Rio,” Dreamscape executive Trevor Scherrer said in a statement.
Birnbaum said the Rio doesn’t need to be on the Strip to be successful — marketing is the key. Dreamscape owns hotel properties in New York, Miami, Phoenix, Los Angeles, Nashville, New Orleans, Charleston and Philadelphia, including The Pod Hotel in New York’s Times Square and The Goodtime Hotel in Miami’s South Beach. The Rio is the company’s first gaming property.
“There's a misnomer out there that you have to be on the Strip,” Birnbaum said. “What you have to do is create a good product, whether you're on the Strip or you're off the Strip.”
12 years after abandoning the project, Fontainebleau execs face gaming regulators
Before Dreamscape presents its vision for the Rio, Fontainebleau Las Vegas developer Jeffrey Soffer is scheduled to address the control board for a preliminary finding of suitability to operate the long-delayed Strip property.
Soffer, chairman of Miami-based Fontainebleau Development, reacquired the unfinished 3,700-room north Strip hotel-casino 12 years after walking away from the planned $2 billion development in 2009. At the time, the project was 75 percent complete but the company’s financing had dried up.
During that 12-year absence, the Fontainebleau went through a bankruptcy foreclosure sale and had two different owners before Soffer bought back the 67-story, blue-tinted-glass hotel-casino in partnership with Koch Real Estate Investments.
Soffer will be joined at the control board hearing by Fontainebleau Development President Brett Mufson, who is also CEO of the Las Vegas project.
Fontainebleau developers announced 19 months ago they obtained $2.2 billion in financing to complete the resort. Fontainebleau Development and Koch Real Estate said they secured the construction loan through J.P. Morgan, SMBC, Blackstone Real Estate Debt Strategies, Goldman Sachs, Guggenheim and real estate investment trust VICI Properties. J.P. Morgan acted as the administrative agent.
Following the construction financing announcement, Fontainebleau named five executives who will oversee the day-to-day operations of the property, including former Cosmopolitan of Las Vegas Vice President Colleen Birch, who was named chief operating officer.
Light & Wonder searching for new CFO after sudden resignation
Analysts said the departure of gaming equipment provider Light & Wonder CFO Connie James might concern investors, given unease over the company’s financial projections in a competitive business environment.
The timing was also odd. Las Vegas-based Light & Wonder dropped the news after the stock markets closed the day before the Independence Day holiday. James will leave the company for an undisclosed opportunity outside of gaming on Aug. 25.
“We believe Ms. James offered strong financial leadership during the company’s recent transformation,” Truist Securities gaming analyst Barry Jonas told investors, alluding to last year’s transition and name change from Scientific Games and the combined $7 billion sale of its sports betting and lottery divisions.
“[We] are somewhat surprised by her exit,” he added.
During an investor day last year, Light & Wonder executives projected the company would be producing $1.4 billion in annual cash flow by 2025.
“Given the heightened focus on the guidance for 2025 and [Wall] Street's debate over its achievability, the CFO change does add an element of uncertainty,” Jefferies gaming analyst David Katz told investors.
Light & Wonder reaffirmed that financial prediction in announcing James’ departure.
“Connie has played a key role in advancing Light & Wonder’s cultural and financial transformation, which has led to operational excellence, double-digit growth and a strengthened balance sheet,” CEO Matt Wilson said in a statement.
James, who joined Light & Wonder in 2020, moved into the CFO role in 2021. Oliver Chow, the company’s senior vice president of corporate finance, was named interim CFO while the company conducts a search for a permanent replacement.
Winner of the WSOP Main Event to take home $12.1 million
When the 2023 World Series of Poker champion is crowned Monday at the Horseshoe Las Vegas, the winner will take home $12.1 million — the largest first-place amount ever awarded at the 54-year-old tournament.
The figure will snap the 17-year-old record held by Jamie Gold, who took home $12 million after winning the Main Event in 2006.
This year’s annual championship event — the $10,000 buy-in no-limit hold ‘em — drew a record 10,043 entrants. More than 1,500 players will share in the nearly $93.4 million prize pool. The runner-up to the Main Event champion will earn $6.5 million.
World Series of Poker Executive Director Ty Stewart said the tournament, which offered 54 events starting at the end of May, broke records on a weekly basis.
“This year’s champion will be remembered as the one to conquer the richest event in poker history, well at least until 2024,” Stewart predicted.
Regulators warn Nevada gaming operators about casino cage scam
Nevada gaming regulators issued a warning about a scam targeting casino cage operations where suspects use social engineering tactics to pose as casino executives.
The scam was first reported in late June by KLAS after Circa Casino Resort was defrauded of more than $1.17 million. The news outlet reported the Eureka Casino Resort in Mesquite and the Golden Nugget Laughlin have also been targeted.
In an industry notice released on July 7, Gaming Control Board Chairman Kirk Hendrick and Enforcement Division Chief Kristi Torgerson said the scam involves imposters posing as high-level executives who contact a cage employee via the casino's private branch exchange (PBX), a telephone system used by businesses.
The initial call is followed up with a text message to the employee’s cell phone, purportedly sent by a second manager to confirm the fraudulent instructions.
“The cage scam is sophisticated and has been surprisingly effective in defrauding casinos,” Hendrick and Torgerson said in a statement. “Subjects gain intelligence on high-level casino owners, employees, managers, and others connected to the casino’s money operations.”
Casino cage employees are told to withdraw cash and take the funds offsite for emergency payments on behalf of the casino. According to the control board, fraudsters use a variety of scenarios to manipulate personnel based on a fear of negative consequences.
“Whenever an employee hesitates or resists prompt action, subjects state there is extreme urgency for the offsite payment,” Hendrick and Torgerson said. “Additionally, inferences are made that an employee bonus will be paid for the inconvenience of the unorthodox assignment.”
Gaming regulators asked operators to review all casino and cage security protocols that authorize the removal of cage funds from the licensed premises.
The agency said the scam continues to evolve and has shifted to target gaming pits and other areas of the casino.
“Licensees should be aware that advanced forms of technology, such as artificial intelligence, may increase the effectiveness of this type of fraudulent activity,” the control board said.