Author: David Mckee

First, the bad news. Las Vegas emerged from a December that was just plain awful, as discretionary income continues to dry up. Las Vegas Strip win plummeted 51% to $292 million. Statewide, gambling revenue toppled 35.5% for $684 million, an even poorer showing than we expected. The closest thing to a bright spot was the play of Las Vegas locals, who left ‘only’ 17% less year/year in the slots and on the tables. Heck, it would have been worse had November not ended on a weekend, thereby carrying some late-month income into December when the slots were tallied. This occurred at the same time that various amen corners are saying the future’s so bright we’re going to need sunglasses. Perhaps so, but the December numbers give us an idea of how far we have to go to get back to ‘normal.’

Looser hold didn’t help Strip casinos, whose slot winnings fell 55% on 43% less coin-in. Table-game win ($141 million) fell 46% on 44% less wagering. It’s worse than it looks because the Strip had a relatively good month at baccarat, winning 16% less despite 50% lower play. Not even Circa could save Downtown, off 28% to $45.5 million, whilst North Las Vegas slipped 34% to $19 million. The Boulder Strip stumbled 24.5% to $62 million, Laughlin dipped 19.5% to $26.5 million and miscellaneous Clark County was down 6% to $100.5 million. Utahns came to the rescue of Mesquite, flat at $11 million. Upstate, things looked slightly better. Reno slid 16% to $44 million and volatile Lake Tahoe was relatively mild, down 14% to $15.5 million. Wendover was off 10% to $16 million. Maybe that last-minute Trump administration economic-diversification won’t be so bad for Wendover Will after all. And with that we draw the curtain on a year that Nevadans would heartily prefer to forget.

We were sure this was a story from The Onion or the Babylon Bee but, no, it’s really a thing. Rodney Baker has resigned as CEO of Great Canadian Gaming Corp. after bringing disgrace upon it with a vaccination caper that made international headlines. He and his Russian trophy wife Ekaterina (young enough to be his daughter) flew to Yukon then—allegedly—chartered a private plan to the remote town of Beaver Creek. Once there, Baker, who makes $10.5 million a year, and his princess passed themselves off as employees of a local motel (allegedly) in order to qualify for high-priority Covid-19 vaccinations. Once they got what they wanted, they decided to skip town ASAP. Being afflicted with stupidity as well as an overweening sense of entitlement, they made the mistake of asking for a ride to the airport. Red flags went up and pretty soon the Mounties were on the case … and they always get their man.

It would be great to see Canadian authorities throw the book at these two freeloaders but it’s a light book: $1,150 in fines (already levied) and an optional six months in the clink, which seems highly unlikely. Needless to say, public outrage is running high. “We are deeply concerned by the actions of individuals who put our Elders and vulnerable people at risk to jump the line for selfish purposes,” remarked White River First Nation Chief Angela Demit. “Effectively what they did was they put our community and our isolation team at risk,” added Yukon Community Services Minister John Streicker. “I’m pretty angry at the whole thing.” Great Canadian did not comment on Baker’s precipitate departure but perhaps we should give the last word to Mrs. Baker, whose public posture earlier in the pandemic was, “I stay home to be part of the solution. Everyone, stay home. It’s the right thing to do.” Right then, wrong now.

Does reporting bad news get tedious? You bet! But it comes with the turf. Louisiana casino winnings declined 23% last month, in keeping with the national average. Penn National Gaming casinos got off easiest, slipping 11%, while Boyd Gaming ones tumbled 25% and Caesars Entertainment plunged 38%. The latter wasn’t helped by the continued closure of Isle Grand Palais, a hurricane victim. The statewide gross was $162 million. Capacity limits (50%) and reductions in gaming positions (-75%) remain severe, though a larger economic malaise appears to be in play.

Baton Rouge got off by far the easiest, down 7%, led by L’Auberge Baton Rouge (pictured) with $12.5 million, a 1% gain. Casino Rouge was 11.5% off the pace at $4 million, while ancient Belle of Baton Rouge deservedly plummeted 44% to $1 million. In Lake Charles, market share was best defended by Golden Nugget, grossing $24 million and down 8%. L’Auberge Lake Charles slid 19.5% to $23 million and Delta Downs shed 18% to $12 million. New Orleans suffered the most of any market, with Harrah’s New Orleans emaciated 37.5% to $16.5 million. Runner-up was Boomtown New Orleans, down 14.5% to $8 million, while Treasure Chest notched $6 million, a 28% spill, and Fair Grounds racino eked out $2.5 million, a 33% dive. Amelia Belle scraped up $2 million, down 32.5%.

It’s a good thing Sheldon Adelson didn’t live to see this. The First Circuit Court of Appeals quashed a 2019 reinterpretation of the Federal Wire Act by the Justice Department, one that broadly applied it to Internet gambling. The federal court agreed with a New Hampshire one that the Office of Legal Counsel had erred and that the Wire Act only applies to interstate sports betting. The case had been brought by the New Hampshire Lottery “We find the plaintiffs’ claims are justiciable and that the Wire Act applies only to interstate wire communication related to sports events or contests,” sayeth the court. Unless the Joseph Biden administration pursues this to the Supreme Court (highly unlikely), Eric Holder‘s narrow, 2011 interpretation of the Act will stand. In other words, the First Circuit has driven a stake through the heart of the anti-Internet-gaming movement, or what’s left of it.

Were Adelson still around and the First Circuit had upheld the 2019 revision, he wound have found himself in an awkward position. Earlier this week, ace reporter James Rutherford revealed that Las Vegas Sands “was in discussions with potential partners to enter the sports betting business, a move that would take the company down the internet gambling path which Adelson so vehemently opposed.” That would make Adelson even more of a pious fraud than he already was on the Internet issue. It’s a disservice to Sands shareholders that the company has missed the online-sports-betting boat, although it’s in no position to capitalize i-gaming, not after having quit Pennsylvania.

Carl Icahn‘s abusive-codependent attachment to Trump Plaza knows no ends. In his latest gambit, the magnate has kiboshed the implosion of the ramshackle ex-casino that had been slated for sometime in February, by dint of obtaining a cease-and-desist order. Instead, dismantling of the crumbling relic will continue at a stately pace, with plans for the site still unknown. At least Icahn, who has repeatedly embarrassed Atlantic City, showed some grace this time. He short-circuited Mayor Marty Small‘s auction of the demolition rights by matching the leading bid—$175,000—and donating it to the Boys & Girls Clubs of Atlantic City. Our sincere thanks for that, Uncle Carl. “From the beginning, we thought the auction and any other related spectacle presented a safety risk, and we were always clear we did not want to participate in any way,” said an Icahn mouthpiece. Opined The Press of Atlantic City, “We hope this happy ending opens the way for redevelopment of the Plaza site for the benefit of all.” We hope so too.