Category: Casino News

A cool breeze is being felt throughout Big Gaming. It’s the sensation of consumers finally spending less at the casino, the stately winding down of a hot streak that continued longer than anyone would have expected—and which many didn’t. Don’t panic: With casinos at the hottest since forever, it was only natural that Americans’ fever for gambling would ease, at least a bit. Having burned through a remarkable amount of discretionary capital, Yanks are pulling back on our spending a wee bit … albeit not on the Las Vegas Strip. Of course, when the United States gets even a mild cold, Nevada contracts pneumonia … but we’re not there (yet).

Sorry, imperator. The votes have been counted in Missouri and the initiative Caesars Entertainment tried to block, Amendment 2, has eked out the narrowest of wins. With victory within its grasp, Caesars told its troops to stand down three weeks before the vote. Now it emerges that the Roman Empire’s real motive for throwing in the towel was opportunistic and hypocritical: It could get one online sports betting license for every casino it has in the Show-Me State plus one, not the feared single license. Considering that Caesars has more online brands than it can shake a fasces at, this is good news for CEO Tom Reeg and his digital minions. However, had they sought a legal opinion sooner they might have saved themselves $15 million in wasted campaign money.

Congratulations, Atlantic City. Your relevance is being questioned again. Not only did casino revenues drop 8.5% last month (though they were still 3% better than prior to Covid-19 disruption), brick-and-mortar gambling yielded less than Internet betting did. Cyber casinos made $213.5 million, compared to $209 million for terrestrial ones. The blame game is undoubtedly very complex and resistant to easy reduction. But dare we suggest that ONE factor making iGaming more appealing is that you don’t have to breathe goddamn secondhand smoke—unless you want to puff away in the privacy of your home? And fewer and fewer punters are inclined to light up. Just a thought.

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.

“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.