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Caesars takes a bath; MGM weak

Although third-quarter results were announced last week for Caesars Entertainment, they took a distant back seat to the news that the company was selling its Ferris wheel and Linq Promenade at a steep loss. Howard Stutz of The Nevada Independent cut to the quick, pointing out that the $275 million payday was a 50% discount to how much Caesars spent to develop these dubious assets. The High Roller “observation wheel” was a particular dog, having been built in an awkward location from which there was precious little to see except the backside of the former Imperial Palace and its curious, swastika-like configuration.

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The sky isn’t falling

Yes, the Las Vegas Strip is mildly swooning. It was down 2% last month, the third straight month of declivity. But before one ascribes to headline-writer hysteria, remember that this is a decline from the most dizzying heights Big Gaming has ever scaled. People may complain about price gouging, high table “minimums” and lousy odds in Las Vegas casinos, but that sure hasn’t stopped them from staying and playing, in droves. We’re not going to take a victory lap, like American Gaming Association CEO Bill Miller did at Global Gaming Expo, but neither are we pushing the panic button.

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Love and kisses from Wall Street

Not-so-buried Treasure,” said Truist Securities analyst Barry Jonas about Boyd Gaming, in a playful allusion to its new Treasure Chest casino, which has been steadily outperforming the New Orleans market. Even so, he kept his price target at $77/share but rated the stock a “Buy.” Big deals were deemed unlikely, Penn Entertainment takeover talk having long since gone off the boil. Boyd beat Wall Street estimates across all divisions, delivering net revenue of $961 million and cash flow of $337 million.

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On the radio

This morning saw (heard?) us do a guest stint on KNPR-FM‘s State of Nevada. We expounded on various and sundry topics, mostly Global Gaming Expo and the sorry condition of what passes for casino regulation in Nevada. Smoking in casinos—and why it persists—was dwelt upon, as was the failsino that Bally’s Corp. is fancifully planning for the Tropicana Las Vegas site. After his laughable project design was met with much Sin City derision, Bally’s Chairman Soo Kim was quick to walk it back, via his reliable PR organ, the Las Vegas Review-Journal.

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Silliness, sleaze and s**t

That dingbatty mess you’re contemplating is the proposed “master plan” for Bally’s Las Vegas. Or whatever it will be called. If it gets built. A big “if.” Since it centers upon the proposed—but still improbable—Sacramento Athletics stadium in the middle, it’s more that a colossal “IF.” Before we get into why this megaresort is highly unlikely to transpire, let’s unpack what passes for a design.

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Bally’s flops & other news

Bally’s Casino in Chicago is a dud. A flop. Maybe not an outright debacle (although being smack in the heart of downtown, it should have been doing better) but an inarguable disappointment, one that augurs poorly for $1.2 billion Bally’s Chicago—a Bally’s casino in name only. How do we know this? Because Hard Rock Rockford opened its permanent casino in August, enjoyed its first full month in September and zoomed straight past Bally’s and almost everyone else into second place in Illinois. That’s a staggering achievement and makes Bally’s failure to gain traction all the more stark.

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G2E: The Street meets The Man

Global Gaming Expo is a time when Wall Street analysts descend upon Las Vegas to romance Big Gaming’s high and mighty. Among those being wined and dined was Station Casinos CFO Stephen Cootey. (What, Frank Fertitta III couldn’t make it?) Cootey was wooed by J.P. Morgan analyst Joseph Greff, who hosted the investor dinner. The essence of the meeting was that the song remains the same. High-end properties, strong; low-end casinos, weaker. Promotions? “Rational.”

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G2E: Miller Time

2024’s Global Gaming Expo “officially” kicked off yesterday, though one could easily have been fooled, judging by the rabbit warren of activity on Monday. Having covered two panels, plus an interview, plus writing five stories yesterday (all on two hours’ sleep), we confess to a serious case of G2E fatigue—with two days remaining. And since the co-parent of G2E is the American Gaming Association, it was (per ancient custom) the prerogative of AGA prexy Bill Miller to be the first keynote speaker of the show.

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On the road (again)

… with apologies to the great Willie Nelson. Our hejira has taken us in a week from Lexington, Virginia to Charlottesville, to Charlotte, North Carolina and Columbia, South Carolina—all in the name of getting back to Augusta, Georgia, only to find a city devastated by Hurricane Helene. Never have we seen such destruction firsthand. (A state reeling from Helene’s wrath may finally be tractable to sports betting and maybe even casinos. We can but hope.) And yesterday we flew from Augusta to Las Vegas for this year’s installment of Global Gaming Expo. Above you see the surprisingly palatial press room at the Venetian Expo Center. We rate!

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If you thought irony was dead …

Atlantic City dip; Another strike in Motown?

… go to Atlantic City. Casino operators are patting themselves on the back for raising awareness of breast cancer this month. If they really cared, they’d ban smoking on their gambling floors. After all, what says “careless risk” like dealers having carcinogens blown in their faces? Rather than ‘promote early awareness’ of breast cancer, why not stop it before it starts? But no, dead employees are part of ‘the cost of doing business’ for Big Gaming and the latter will pay lip service for fighting cancer, so long as no real and meaningful action has to be taken.

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