Author: David Mckee

There’s so much news today we almost don’t know where to begin. But we’ll start with Atlantic City, which reported a 2% increase in casino revenue, to $229 million. Internet gambling and sports betting chipped in another $169 million. One of the biggest beneficiaries was Bally’s Atlantic City (above), which leapt 20% to $13.5 million. Other coffee achievers were Ocean Casino Resort, which catapulted 29.5% to $30 million, and Hard Rock Atlantic City, scarcely to be outdone with a 26.5% increase to $44.5 million. Borgata actually lost market share (or was unlucky at the tables), down 4% to $54 million. Of the Caesars Entertainment threesome, only Tropicana Atlantic City was revenue-positive, up 1.5% to $21.5 million. Harrah’s Resort was 5.5% down to $20 million and Caesars Atlantic City, formerly the most volatile house in town, ceded just 4% to $19 million. Resorts Atlantic City was flat at $14 million and Golden Nugget nudged up 3.5% to a last-place $12.5 million. Overall, slot revenue climbed 11% to $171 million on 12% more coin-in, while tables saw 4% less win but on 7% less wagering.

Continue reading Atlantic City strong; Station’s demolition derby; De$anti$ hits jackpot; Mega-Jottings

Prior to the current Covid-19 lockdown, casinos in Macao were already engaged in a $600 million/month cash burn, thanks to the China‘s zero-tolerance policy on the disease. That will only get worse now that access to customers has been shut off entirely, needless to say. Given the former and potential money-making puissance of Macao, the six operators have no chance but to hunker down and absorb the punishment, especially as they wait the six months before their licenses are renewed, as appears inevitable. (And why not?) “The sad part is that it’s going to be years until business comes back to where it used to be,” observed gaming pundit Alidad Tash. How many years remains to be seen but the smart money is on later rather than sooner.

Continue reading Insolvency in Macao; Sports betting everywhere

California‘s Democratic Party has officially taken sides in the sports-betting ballot race and effectively come down on the side of a tribal/racetrack-driven initiative, going on the record as opposing a rival measure backed by most of the big names in online wagering. This is not entirely surprising. The Dems are going with a traditional source of support (Indian Country) and against what is, mainly, a group of carpetbaggers with relatively political clout out West. To split hairs, the California Democrats are not endorsing the tribal initiative, staking out an official stance of neutrality. But when they line up against Big Gaming’s alternative, we know darn well where their sympathies lie.

Continue reading California Dems rebuff Big Gaming; Icahn irate; Mega-Jottings

Since it has been outperforming the broader U.S. market for some time now, perhaps we should not be unduly concerned that Ohio casino revenues are down for three months in a row. Indeed, compared to go-go 2019, they’re still arguably overheated, up 17%. Besides, there was simply so much money that Americans could gamble and lose, and inflationary pressures in non-discretionary areas of the pocketbook cannot be denied. But don’t hit the panic button.

Casinos and racinos in the Buckeye State grossed $189 million last month, 4% lower than the previous June. The pecking order remains pretty much the same, with racino MGM Northfield Park easily out front with $23.5 million (+2%), followed most closely by Jack Cleveland ($22 million, -5%). Hollywood Columbus tumbled 9% but hung onto third place with $21 million, while Hard Rock Cincinnati continues to prosper from its new brand, up 5.5% to $20.5 million. Rounding out the casinos was Hollywood Toledo and its $18 million (-5.5%).

Continue reading Ohio shows fatigue; Macao seizes hotels; Abe assassinated

Truist Securities analyst Barry Jonas recently took a tour of Las Vegas‘ C-suites, meeting with executives of seven companies. He concluded that “Despite market sentiment, operators remain generally positive.” Both the Las Vegas Strip and the recently declining locals market were both deemed “healthy,” while crucial convention business was seen as returning to pre-Covid-19 levels (with prices to match, we might add). Strong product from manufacturers is reported to be propelling higher demand from operators, even in advance of Global Gaming Expo.

Inflation? What inflation? That remained the prevailing sentiment. Or, as Jonas put it, “While downtown operator Circa recently noted seeing some decline in casino revenue from increased gas prices inflation, our meetings noted no impact on Strip visitation and customer spend. One operator notes a possibility of seeing some inflation pressure on margins given rising costs with potential wallet shift from gaming to lower margin non-gaming.” If there’s a dark lining to the silver cloud it’s operators’ reversion to a mentality that gaming is recession-resistant (disproven after the Great Crash of 2008) “with variable cost and pricing structures ability to mitigate revenue declines.”

Continue reading Strip perceives no inflation woe; Union sells out workers health