Author: David Mckee

While Bally’s Corp. may not be the laughingstock of the casino industry, it isn’t for want of trying. You would think that Bally’s Atlantic City (above) would want to pimp nearby Bally’s Dover Downs to its customers. Instead it sent a lengthy mailer touting all the great deals to be found … at Bally’s Vicksburg. We mean, if you’ve driven to Atlantic City regularly, what’s a quick little runout to Vicksburg, the vacation capital of Dixie? (Not.) Don’t get us wrong. We’ve been to Vicksburg. We like Vicksburg. But it’s not exactly the destination that Bally’s customer base is slavering to be incentivized towards. Actually, Bally’s apparently needs to induce players to stay in Atlantic City anyway. Through the end of the month it’s offering room rates starting at $19 a night, though one wag suggested that was $15 too much (and yes, he’s stayed there).

Continue reading Report from the shore; Cretins win in Alabama

Casinos on the Las Vegas Strip won $660 million last month, a 5% bump over last year, as business continues to trend well into 2023. (It was also up a whopping 27% over 2019.) Strip numbers also benefited—although locals ones did not—from July having ended on a Sunday, meaning last-minute slot winnings were rolled into August. Strip slot win, $381 million, rose 6% on 11% more coin-in on an 8% hold. Table games yielded $186.5 million, also up 6% despite 5.5% lower wagering. Baccarat play eked up 2% for 1% more house win. Locals play stayed on an even keel ($250 million) with the year before, but was a sky-high +41% over pre-pandemic 2019.

Continue reading Strip buoyant, locals flat

Today we conclude our review of Deutsche Bank analyst Carlo Santarelli‘s recent field trip to Las Vegas. We resume with Station Casinos, which seems to be accelerating its development timetable. Once it gets Durango Station up and running, it will proceed with both Inspirada and Skye Canyon, both of which are currently in the design phase. They enjoy favorable demographics, with Skye Canyon having been named one of the top 10 master-planned residential communities in the country. No word on what Station plans for the 100-acre Wild Wild West site, although Santarelli said the land gives the company “valuable optionality as the Strip continues to expand.” (Is that code for ‘flip’? It would be out of character for Station.)

Durango seems to be moving toward an early 2024 opening, although the timeline is kind of hazy, but it’s on budget and will be in an area that has 50 adults per gaming position, double the number surrounding Red Rock Resort—a Strip-caliber property stranded out in the ‘burbs. Household income in the Durango Station area is also only 8% below that in Summerlin, yet another positive harbinger. Santarelli doesn’t expect staffing of the new casino to be “problematic,” for several reasons, including Station’s status as a preferred employer in town. The company told him it is fully staffed at present and “Management noted that it has adapted a more disciplined approach to cost control via hourly wage management, given wage inflation.”

Continue reading Voyage to Vegas, Part Two

Internet gambling produced more than Detroit‘s casinos did for Michigan last month, $131 million to $104.5 million. Unsurprisingly, BetMGM was dominant with $49 million. Thence came DraftKings ($26.5 million) and FanDuel ($19 million). Smaller fry included BetRivers ($9 million), Caesars Entertainment ($6 million), and WynnBet and Barstool Sports at $4 million apiece. Sports betting was not nearly so lucrative, with $24 million realized on $218 million in handle. A third of that went right back out in the form of promotions, with Barstool engaging in significantly less promo activity than its rivals, per Penn Entertainment CEO Jay Snowden‘s rationale for buying Barstool in the first place. As for revenue, FanDuel (32% of market share) outdueled DraftKings (21%), while BetMGM was close behind at 21%. Caesars and Barstool each accreted 7%.

Continue reading Weekend edition

Casino executives in Atlantic City may continue to plead poverty but the numbers tell a different story. Last month’s tally was $274 million, up 4.5% from last year. Slot revenue was $204 million, up 3% on looser hold and 3.5% more coin-in. Table games brought in $68 million, an 8.5% jump on 8% greater wagering. Borgata vaulted 38% to $72 million, most closely followed by Hard Rock Atlantic City, flat at $46 million. Then came Ocean Casino Resort‘s $36.5 million, a 10% hop. All three Caesars Entertainment properties lost market share. Caesars Atlantic City fell 13% to $22 million, Harrah’s Resort was down 10.5% to $25 million and Tropicana Atlantic City slipped 10.5% to a group-best $26 million. If you rolled all three together they’d just barely be making more money than Borgata alone. Which is kind of sobering. Bally’s Atlantic City clawed 2% higher to $16 million, Resorts Atlantic City was flat at $18.5 million and Golden Nugget slid 18.5% to $13 million.

Continue reading Atlantic City still surging; Aces win it all for Las Vegas