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

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.

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Atlantic City sexism and other capers; Falling Star

While we have no definitive idea whether Ocean Casino Resort CEO Bill Callahan is a male chauvinist pig, he certainly presents a convincing set of credentials in a Global Gaming Business puff piece. Never mind the efforts of predecessor Terry Glebocki (above, hounded out by the Illitch family), when it comes to Ocean’s reinvention from joke to overachiever, Callahan says he did it all himself, derogating previous administrations several times over in an ode to his own perspicacity. We’re sure that, by this point, Callahan has made some changes—like the new sports book—that are redounding to the good. But to take credit for everything … that requires a fair amount of gall.

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George of Georges; Bally’s crumbling; Indiana dips

Before we go any further, bravo, bravo, arcibravo to Hard Rock International to laying some serious bread on its salaried workers. As of now, the base salary for non-tipped employees at Hard Rock casinos goes from $18/hour to $21. Hard Rock didn’t have to do it, it just did, which makes it all the more laudable. True, as some are suggesting, there’s some enlightened self-interest involved: Why work for the competition if you can go to Hard Rock and make significantly more? But that doesn’t diminish Hard Rock’s generosity, summed up by CEO Jim Allen as follows: “We looked at all the starting salaries of all our line employees, certainly recognizing the economic conditions that have been going on … We’re trying to find the highest quality employees, thanking them for their efforts and recognizing that with compensation.”

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Horseshoe boosts St. Louis; U.K. gaming reform slowed

Gambling continues to prosper in Missouri, where August receipts ($161 million) were 5.5% above last year’s. Visitation was actually down 5% but per-player spending rose 11%, inflation be damned. Ameristar St. Charles was out front with $26.5 million, leaping 9%. River City was next at $21 million, up 8%, while Penn Entertainment‘s nearby sister property Hollywood St. Louis jumped 10% to $19 million. Freshly rebranded Horseshoe St. Louis showed signs of a turnaround, up 6% to $14 million. Over in Kansas City, there’s a continued tailwind behind reinvented Bally’s Kansas City, up 9% to $10 million, even if it was in fourth place. Market leaders were Ameristar Kansas City ($16.5 million, +1%), Harrah’s North Kansas City ($15 million, +14%) and Argosy Riverside ($15 million, flat). Outstate, Century Casinos had adverse months in Caruthersville ($3.5 million, -9%) and Cape Girardeau ($5.5 million, -7%), while Isle of Capri Boonville climbed 5% to $7.5 million.

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Gaming levels off at high altitude; More Chicago shenanigans

Casino receipts are in for a quartet of states and they tell a similar tale: That gamblers are reining in their 2022 spending … but are still wagering (and losing) way more than three years ago. Hardly a picture of an ailing economy, at least as it pertains to gaming. The outlier was Illinois, flat with 2019 ($117 million) but up 9% from last year. Customers attended much more (10%) and spent slightly less (-1%). Traditional market leader Rivers Casino Des Plaines booked $48 million, a 17% surge, while rebranding continues to benefit Bally’s Quad Cities, vaulting 26% to $4.5 million. Hard Rock Rockford also came in at $4.5 million, while Par-A-Dice climbed 3.5% to $5 million.

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Justice for German; MGM gets some Wall Street love

Clark County Administrator Robert Telles (D) is in custody for the murder of Las Vegas Review-Journal investigative reporter Jeff German in what has all the appearance of a revenge killing. Good work by Las Vegas Metro, despite a set of conflicting statements that the German assassination was “an isolated incident” and the act of someone casing the neighborhood for crimes of opportunity. (Like killing crusading reporters, we guess.) The alleged perp was stupid enough to drive to and from the crime scene in a GMC Yukon Denali tricked out with chrome handles and a sunroof, not your average perp. Ditto the strange disguise affected, which had Metro briefly baffled as to whether the suspect was a he or a she. Perhaps the sight of Telles washing town the Denali hours after the crime was what did him in. (Or maybe it was wearing a white hazmat suit to clean his garage. Nothing strange about that, eh?)

Just prior to being apprehended by Metro, Telles sustained what is described as a self-inflicted wound (mens rea?) and was carried from his SWAT-breached home on a stretcher. A Denali matching crime-scene footage was towed from his driveway. The timing of the crime was opportune and incriminating: According to the Los Angeles Times, “German was working on a new story about Telles the week he was stabbed to death.” Previously, German had covered Telles for “allegations of bullying, favoritism and an inappropriate relationship between Telles and a subordinate. Telles had publicly accused German of being a ‘bully’ and running a ‘smear’ campaign against him,” in the great tradition of Nevada elected officials. (Telles remains in office until December 31.)

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Crimes and misdemeanors

Whoever killed reporter Jeff German may not be too terribly smart. Las Vegas Metro released photos of its prime suspect, dressed in “a bright orange reflective long-sleeve shirt, a pair of jeans and a straw hat that covered much of his face. He was also seen carrying a dark gym bag over his shoulder.” The hat covers so much of the face that one can’t even be sure it was a he. If this person was trying to be conspicuous, they succeeded. Metro’s working theory is that “the alleged killer was surveying the area to commit other crimes before German’s homicide Friday.” Wouldn’t it be bitterly ironic if the Las Vegas reporter with the most enemies in town died at the hands of some random, panicked prowler with bad fashion sense?

Is Wynncore still a haven for Steve Wynn minions doing the master’s bidding? That’s the allegation of a new lawsuit, which accuses Wynn Resorts of retaliating against a massage therapist and creating a hostile work environment to this day. Her crime? Being Steve Wynn’s “on-call sexual servant.” According to the lawsuit, plaintiff Brenna Schrader “was subjected to rape and sexual assaults beginning in 2012 until 2018 by either Mr. Wynn or a VIP guest and was required to remain on call for Mr. Wynn’s sexual satisfaction. This left Plaintiff unable to defend herself or escape and, in many instances, exhibiting symptoms of Stockholm syndrome.” Whether you sympathize with that argument or not, there can be no doubt that Steve Wynn’s sultan-like behavior typified the worst aspects of Sin City, aided and abetted by former Las Vegas Review-Journal leadership, which swept the story under the rug way back in 1998.

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The bad sleep well

In case you missed it, crusading, veteran investigative journalist Jeff German was murdered near his home on Friday. He was stabbed to death following an “altercation” with someone as yet unknown. The up-close-and-personal manner of the crime puts the mind to work and the Las Vegas Review-Journal has published a litany of potential suspects, people and agencies who betrayed the public trust and—in some cases—lost their jobs because of German’s work. I never knew the man. I doubt I ever even spoke to him on the phone. But he was the best at what he did. An attack on German is an attack on everybody who covers Southern Nevada and a message has been sent: Don’t mess with The Man. At least Las Vegas Metro is on the case and the R-J continues to ask questions. Metro says it has a suspect. I hope it’s not some patsy, a convenient meth head thought to have been rummaging through German’s garbage—though it may well have been someone with dirty laundry all right. As R-J Editor Glenn Cook said, “I’m relieved that police have identified a suspect, and I hope an arrest can answer the question we are all asking right now: Why would someone kill Jeff?” I can think of a few reasons.

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Jottings for the weekend

Aside from the launch of sports betting in Kansasspearheaded by Hollywood Casino and Kansas Star—it’s been a slow news week. Casino gambling is headed the wrong way in Alabama, where employee-owned GreeneTrack Class II casino was forced to shut down, thanks to the state Supreme Court. The latter levied a $106 million tax bill on GreenTrack, an impost that exceeded revenues. With similar levies facing other private-sector, electronic-bingo casinos in the state (except for tribal ones), other closings may well follow … Florida-based No Casinos will be the next party to wade into the lawsuit involving the Seminole Tribe‘s dubiously constitutional sports-betting compact (above). Group spokesman John Sowinski argues that the Seminoles are trying to have their cake and eat it too by expanding gambling across the state—in violation of Amendment 3—and yet claiming it is exempt by being tribal. “It’s an intellectually dishonest argument. It is an argument that is an affront to the people of Florida who have the right in their constitution to control what forms of gambling exist outside of tribal lands,” said Sowinski …

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PILOT overboard!; Black Book bust; A spark for Sparks

“There is no evidence to suggest that casinos could not meet their PILOT obligations.” With those words Judge Michael Blee tossed New Jersey‘s current Payment In Lieu Of Taxes (PILOT) special-status tax program for casinos, which has lost round after round in the courts. The PILOT quasi-subsidy assesses each Atlantic City casino a share of its gross gaming revenue rather than levy property taxes. This has been the rule since 2016 but last year, in an overreach sped through the Lege by Gov. Phil Murphy (D), online gambling revenues are excluded from the PILOT assessment. This was done at the behest of alarmist casino owners, who said they needed the financial relief to get past the effects of the Covid-19 pandemic. Judge Bee found these grounds, in a word, dubious. They resulted in a $55 million shortfall that disproportionately affected Atlantic City proper.

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