Author: David Mckee

Bally’s Atlantic City and Golden Nugget traditionally jockey for last place in Atlantic City monthly gaming grosses. Indeed, a midweek visit to Bally’s by our East Coast correspondent found the place practically deserted (and in need of more capex $$). But he went back last weekend and found a “decent number of people.” It surely did not hurt that Bally’s—seen above—was being ‘george’ with promotions (reversing an A.C. trend), crossing customers’ palms with everything from $50 gift cards to 32-inch LCD TV sets. Room rates that start at $19/night and whiskey-tasting promos can’t be harmful, either. Concurrently, at the Nugget, business was also moderate, perhaps having settled down after a big chicken-wing dining promo. Nonetheless, the Nugget (below) “had a much more vibrant vibe than Bally’s.” We hope the mayor’s office in Chicago is taking a look at Bally’s A.C., since there’s a serious chance it could pick Soo Kim‘s underachieving company over Hard Rock International and Rush Street Gaming, improbable as that may seem.

It’s difficult to keep track of the mixed messages coming from Bally’s Corp. Chairman Soo Kim. He’s promised to make a Chicago casino the “flagship” of his company. But he’s also talking about razing the Tropicana Las Vegas and building a Strip megaresort. So wouldn’t that be the Bally’s “flagship”? Or is it his priority to take the company private, as appears to be the case? (A special committee has been formed to study the offer.) In the meantime, there’s work to be done at Bally’s Atlantic City. Our East Coast correspondent “made a wrong turn and got here. It’s so empty that it’s creepy (but wait, it’s always that way) … I am wondering if Bally’s is up to the job of doing a large-scale renovation. As I wandered around, seeing worn carpet seams, rusted metal around mirrors in bathrooms, it reminded me of Uncle Carl’s Taj Mahal, not worth fixing … Hey, I found a 9 cent machine and for a total of 14 cents including a bonus, I won a few pennies.” So don’t say there’s no excitement to be had at the House of Kim.

As usual when billions are on the line, regulators dove under the table regarding the sale of Venelazzo to an unholy alliance of Apollo Management and Vici Properties. Although the Nevada Gaming Control Board cried foul—and rightly so—at the sexual predations of Steve Wynn, it turned a blind eye to similar malfeasances by principal (12%) Apollo shareholder Leon Black. The latter had to step down as Apollo chairman for having “paid convicted sex offender Jeffrey Epstein $165 million for financial advice.” Is that what the kids are calling it these days? The 70-year-old billionaire is also under investigation for having allegedly raped a Jane Doe at Epstein’s Manhattan crash pad back in 2002. (Classy gent that he is, Black is having his lawyers shame the alleged victim.) The Epstein/Black connection is a tangled one … and this is the man Nevada regulators are prepared to gift with one of Las Vegas‘ premier resorts.

In the year’s worst-kept secret (or least surprising news story), Caesars Entertainment is finally rebranding Bally’s Las Vegas as the Horseshoe to end all Horseshoes. We were all over the story yesterday, in case you want the full monty. A game of musical chairs will ensue, since the displacement of the Bally’s name frees it up for Bally’s Corp. to slap it on the long-suffering Tropicana Las Vegas, part of a full rebrand of all of Chairman Soo Kim‘s assets except (sensibly) Hard Rock Biloxi. In at Horseshoe-to-be is “a handcrafted feeling with tooled leather, dramatic colors, and the brand’s signature gold horseshoe iconography.” Out, we hope, will be Real Bodies and some of the other low-rent aspects of the property as it is.

The return of Horseshoe to Vegas where it belongs overshadowed today’s revenue report on Nevada casinos. Strip gross gaming revenue of $651 million was up in December by 10% over 2019, while locals momentum slowed a bit, to +5% and $229.5 million. Players were openhanded on the Strip, with slot coin-in up 22% (driving an 18% increase in win to $377.5 million) and table wagering 13% higher (a robust +32% and $188 million once baccarat is factored out). Baccarat was, indicated, a weak spot, down 15% in volume albeit 16% higher in revenue and despite low hold. Visitation to Las Vegas remained 9% below 2019, at least with regard to travelers passing through Reid International Airport. Domestic travel was only 5% off but international flow was down 58.5%.