Boyd Gaming says it has the cash and it's ready to buy most of Station Casinos. The deal would be nearly $1 billion.

In an unsolicited offer, Boyd feels like it can buy Stations for a steal. Deutsche Bank Gaming Analyst Bill Lerner agrees, “Boyd is in a position to write a check for this right now.”

In a letter to Station Casinos Chairman, President, and CEO Frank Fertitta, Boyd Gaming offered to pay cash for all or part of Stations. The first deal offered $950 million for everything Station Casinos owns, except Boulder, Palace, Sunset Stations and Red Rock Casino.

Lerner says most of the debt that pushed the company into a planned bankruptcy is tied to those properties and it's the reason the company is in so much trouble, “I give this a large weight. It's a function of how much debt they have incurred in order to go private. Then that has been exacerbated by the downward pressure on cash flow because of this economic environment.”

He adds that this offer makes sense for Boyd Gaming, “Our first cut suggests that it could be done in an accretive manor for Boyd's earnings. It could help Boyd's earnings.”

It's a company that understands the locals market.

Boyd also has $2 billion in a line of credit taken out to build Echelon. Now that the project is on hold, the company can use that money for Stations.

Station Casinos executives responded saying Boyd's proposal was unsolicited and that they plan to continue working with lenders and bondholders on a reorganization plan. But they do intend to take a look at Boyd's offer.

Bill Lerner's employer, Deutsche Bank, has done business with Boyd Gaming in the last year, but Lerner does not hold any direct interest in the company.

The Nevada Assembly has voted for a tax increase on hotel rooms in the Las Vegas and Reno areas to help deal with the state's widening budget crisis.

The Assembly voted 35-7 for the increase of up to 3 percent in the room taxes. The proposal now moves to the Senate. Under the proposal, proceeds from the room tax increase would at first help make up for budget cuts in education that have been required because of a worsening state revenue shortfall. Later, the proceeds could be used to supplement regular K-12 funding approved by state lawmakers.

The plan was backed by Nevada voters and also by Gov. Jim Gibbons as a result of that public support. Last October, major Nevada casinos and a teachers union delivered more than 130,000 signatures supporting the plan.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

It's hard to see that there's a recession when you look at the activity at the Hard Rock Hotel. The economy has halted construction plans for a number of billion dollar companies across the valley, but the latest expansion at the Hard Rock Hotel and Casino will mean new jobs and more customers.

Hard Rock Vice President of Entertainment Paul Davis says people are spending money, but companies have to stand out.

“It's a true textbook shake out. Those who are peddling faster and trying harder and being more creative and cautious are going to do just fine,” he said.

A new 3,000 seat concert venue can be adapted for boxing and mixed martial arts. There will be luxury boxes and three floors for fans to watch. It's the first of a $750 million expansion. When completed, there will be 70,000 square feet of meeting space, 850 new rooms, and a new spa.

Yale Rowe runs the Hard Rock Hotel and Casino. He says everything will open by the end of December, “We are bringing it on at the right time. I would not want to open the whole project today. It's lucky. Whatever it may be, we are excited that we wrap up in December.”

Rowe says the Hard Rock is in a little better position because they approved all of their financing before the construction project even started. That prevented the recession from shutting them down.

“Call it luck. Call it whatever you want,” said Rowe

“The recession is going to turn for the good at some point. Vegas always bounces back, for any of us who have been here a long time. We know that. When that happens, we will have a very shiny, brand new mouse trap to sell,” said Davis.

Davis thinks when the economy does rebound, the Hard Rock will stand out in Las Vegas.

The first concert in The New Joint will be The Killers, a band from Las Vegas band that hit it big. Hard Rock management says they will attract more people by offering reasonably priced tickets. Tickets for The Killers sold for a base price of $59.50.

Nevada casinos had their worst-ever decline in winnings in 2008, down almost 10-percent from 2007, based on state Gaming Control Board data going back more than half a century.

The Control Board reported Wednesday that the resorts won $11.6 billion from customers last year, down 9.7-percent from the $12.8 billion won in 2007.

“This is by far the largest decline ever recorded for the state gaming win, and only the third since 1955,” Control Board analyst Frank Streshley said in releasing a grim report that showed the clubs going from bad to worse over the course of 2008.

The only previous slides in year-over-year winnings, both post-9/11, were small by comparison: down 1.3-percent in 2001 and down 0.3-percent in 2002.

“From the start of 2008 to the end, the drop in the gaming win has accelerated, not flattened out,” Streshley said. “The fourth quarter was the worst, down nearly 19-percent — and 2009 looks to be very challenging.”

“In the first half of 2008, we started seeing a drop-off in the economy brought on by record gasoline prices and falling home prices,” he added. “The second half of the year definitely was affected by increasing joblessness, and the huge downturn in the stock market really came into play in the fourth quarter.”

Declines in the win were reported in all 12 months of the year, and every live game, most slot machine categories and all major markets showed slumps. For December, the $888 million win was down nearly 19-percent, mirroring the final quarter.

“When you look at every single (live) game and every single market, that tells you the severity of the decline,” Streshley said.

The 2008 win total of $11.6 billion was the amount left in casino coffers from the nearly $155.4 billion bet during the year.

That means the clubs held onto 7.5-percent of all money wagered.

“Win” is a gross figure, with no operating costs or other expenses deducted. And it's casino revenue only — separate from hotel, restaurant or bar revenues generated by the resorts.

A breakdown of the win shows that the Las Vegas Strip accounted for $6.13 billion of the total, down 10.6-percent; while downtown Las Vegas won $582.7 million, down 8.1-percent.

Resorts in the Reno-Sparks-North Tahoe areas in northern Nevada took in about $930 million, down 11.4-percent. That included $677.6 million for Reno, down 10.2-percent. It was the first time since 1997 that the combined win for the area dropped below $1 billion.

Clubs in Elko County, on the state's border with Utah, won $287.3 million, down 5.3-percent; and resorts on Lake Tahoe's south shore won $304.4 million, down 6.8-percent. The Minden-Gardnerville-Carson City win of $111.6 million was down 6.4-percent.

The $11.6 billion statewide win included $7.74 billion from slot machines, down 8.5-percent from 2007, and $3.7 billion from table games, down 12.4-percent.

A breakdown of games that produced the most revenue in 2008 shows the clubs won $1.25 billion on blackjack, $772.6 million on baccarat, and $448.1 million on craps.

In slots, multidenomination devices won $3.5 billion of the total. Penny slots won nearly $1.8 billion, while quarter slots won $841 million and dollar slots won nearly $782 million.

Sports betting produced another $136.4 million in winnings, down 19-percent. Poker winnings for the clubs totaled $155.7 million, down 7.3-percent.

For fiscal 2009 to date, the state's revenues from gambling total about $365.9 million, down 16.2-percent from the same period in fiscal 2008. That included $35.8 million in taxes based on the December casino win, which was down 22.7-percent from the same month a year earlier.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

LAS VEGAS, Nv. — Las Vegas Mayor Oscar Goodman says his office has been flooded with phone calls after he demanded an apology from President Obama.

Goodman is upset that the Obama made reference that financial institutions that received bail out money should not plan trips to Las Vegas and the taxpayer's dime.

Goodman is sending a letter to the president. In it he writes, “your comments are harmful to the meetings and convention industry as a whole and Las Vegas specifically.”

Read Mayor Oscar Goodman's letter to President Barack Obama

Goodman fears that President Obama's words might cause other companies to re-think about holding meetings and conventions in Las Vegas.

The curtain has fallen on the impersonators show “An Evening at La Cage” after a 24-year run at the Riviera.

Headliner Frank Marino confirmed to Eyewitness News that he gave his final performance on Monday night.

He says the closure is the result of a poor economy. This is the second older Las Vegas show to announce its closure in the past month.

Les Folies Bergere, which has been performed in Las Vegas for nearly 50 years, will end its run in March.

The show opened on December 24, 1959 and came direct from Paris to the Tropicana. The last performance will be on March 28, 2009.

(The Associated Press contributed to this report.)

Casino operator Wynn Resorts Ltd. says it plans to save $75 million to $100 million annually by cutting pay of all salaried workers in Las Vegas, reducing hours for hourly employees and eliminating retirement account contributions and bonuses for 2009.

Chief executive Steve Wynn said Tuesday that the changes would affect employees of the Wynn Las Vegas and Encore casino-resorts on the Las Vegas Strip.

Wynn says employees are finding out about the changes on Tuesday and Wednesday.

Wynn says the goal of the cost reductions is to run the casinos more efficiently and protect the jobs of its employees.

The Las Vegas-based company opened the 2,034-room, $2.3 billion Encore in December.

Wynn says the cuts in Las Vegas do not affect the company's Macau casino in China.

(Copyright 2009 by The Associated Press. All Rights Reserved.)