Author: David Mckee

Casinos in Atlantic City are finally catching up with the rest of gaming’s recovery. Last month they were only 3% off the 2019 pace. They grossed $213 million, a substantial improvement over April. Slot win was $158 million on 8% less handle, while tables won $53.5 million on 2% higher wagering volume. Borgata was a trifle unlucky, with table win down 6% and slots off 15% for a 7% overall decline. The Caesars Entertainment threesome slipped 13% but did fairly well at the tables, down only 2%, while slot win dropped 17%. Broken out by individual casino, Caesars Atlantic City held steady at -2% for $22.5 million, Harrah’s Resort slid 15% to $21.5 million and Tropicana Atlantic City stumbled 21% to $20 million. Borgata’s $49 million gross put it comfortably in first place but the only revenue-positive casinos were Hard Rock Atlantic City, vaulting 22% to $35 million and Ocean Resort, rocketing 51% to $24.5 million (a higher gross than any Caesars property, it should be noted). Resorts Atlantic City hung in there pretty well, down 5% to $15.5 million, while Bally’s Atlantic City skidded 21% to $12 million (to its credit, new management acknowledges that the place needs a refit) and Golden Nugget shed 23% but stayed out of last place with $13 million.

Sports betting was feeling the same May slump-let as everyone else, although handle was a healthy $814 million, up April’s $748 million. NBA action can be thanked, what with the Philadelphia 76ers, Brooklyn Nets and New York Knicks all in the playoffs, engendering $217 million in handle. Major-league baseball was responsible for another $186 million in handle. FanDuel/PointsBet was the revenue leader with $30 million, followed at some great distance by Resorts Digital/DraftKings/Fox Bet‘s $9.5 million. BetMGM held $5 million, Monmouth/William Hill/SugarHouse/TheScore scored $2 million and William Hill’s Ocean Casino outpost snagged another $1 million. Nobody else came close to the million-dollar threshold. Internet casinos held steady, grossing $108 million. BetMGM came in first with $33 million, then Caesars/WynnBet with $15.5 million, DraftKings with $14 million and Golden Nugget Online with $10 million. Concluded PlayUSA analyst Eric Ramsey, “Online revenue has clearly been resilient, but hopefully the retail market can sustain this return to pre-pandemic levels.” Amen.

Continue reading Atlantic City casinos rebound; Slow thaw in Massachusetts

Carrying a 20-year-long grudge, businessman Marshall Hao is suing Las Vegas Sands for $12 billion, claiming it wronged him when it jilted his Asian American Entertainment Corp. in favor of a (short-lived) partnership with Galaxy Entertainment to get into Macao. Although he’s not alleging such, political reasons may have been involved. Hao is a citizen of Taiwan, while Galaxy is firmly China-rooted. He wants 70% of Sands’ operating profits from the 2004-2022 period. The trial will be gaveled into session on June 16. Alas, we no longer have the addled, combative testimony of Sheldon Adelson to anticipate. In the past Sands has stated, “Using a different lawyer every time, AAEC has repeatedly filed lawsuits trying to take credit for that which they didn’t do.” However, the company has a history of promiscuity with regards to its Macanese partners. A $70 million court award to Richard Suen for an unpaid “success fee” still hangs over Sands’ head and the company quietly settled with three local Chinese businessmen for a similar favor.

The timing of the trial is unfortunate for Sands, with reexamination of casino concessions due next year. Whatever dirty laundry is aired is unlikely to redound to LVS’ benefit. Official company rhetoric has even taken a turn for the pessimistic. One of the key points on which the case is sure to hinge is Hao’s contention that the joint proposal submitted by Sands and Galaxy was identical to one already drafted with AAEC. In light of the present imbroglio, Sands will surely line up behind Sociedade de Jogos de Macau in petitioning City Hall to push concession reviews back to 2023. SJM CEO Ambrose So gave the rather weak excuse that the concessions shouldn’t be under consideration while they’re performing poorly financially, thanks to Covid-19 (as though they didn’t have a lengthy track record already). More to the point, he said it would be unfair to some of the concession holders if current travel restrictions prevent them from coming to Macao to testify. Former lawmaker and present casino executive Melinda Chan agreed, doubting that the government could wrap up the process in a year. In any event, Sands is sure to want whatever extension it can get.

Continue reading Big Trouble in Little China; The thieving nun

Casinos in the Free State jetted 13% above 2019 levels, grossing $172 million, a new record. MGM National Harbor led with $68.5 million (+16%) and 40% market share. Maryland Live was up 15% to $61.5 million for 35.5% market share, while Hollywood Perryville justified Penn National Gaming‘s faith in the property, jumping 23% to $8.5 million. Ocean Downs gained 19%, also to $8.5 million and Rocky Gap Casino was up 21.5% to $6 million. The only loser was—you guessed it—Horseshoe Baltimore, sagging 5% to $19.5 million. New management at Caesars Entertainment has announced no plans for the property and it’s an open question whether they have any. Now would be a good time. Over in West Virginia, casinos continue to lag the 2021 recovery, down 18%, with Penn Charles Town further behind at -20%. Overall, slots were a relative bright spot, -17%, negated by a -21% dive at the tables.

“I think there’s incredible resiliency,” restaurant impresario Elizabeth Blau says of Las Vegas. There needs to be, as the Great Shutdown took a scythe to Sin City’s dining scene. “Now with the Virgin hotel opening, Resorts World opening, and numerous hotels having major restaurant openings. Major arenas reopening—the old Vegas is roaring back,” Blau contends. The cascade of debuts includes Virgin Las Vegas‘ One Steakhouse (March), Linq Promenade‘s Sweet Sin (April) and Wynncore‘s long-awaited Delilah (July), all perfectly timed to trade in on Las Vegas’ comeback. And that’s to say nothing of the 40-plus eateries Resorts World Las Vegas will unleash upon the market, with something for every price point. Even buffets are returning, albeit few and cautiously. However, if restaurants are on the rebound, their workers aren’t getting the memo. “Half our union is still not back to work. We have half the union back to work and the other half is still waiting for the jobs. Waiting for when they call them back,” groused the Culinary Union‘s Geoconda Argüello-Kline. Even the new ‘right to return’ law can’t redress that.

Continue reading Maryland heats up; Vegas restaurants rebound; Rivers is george