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Dip on the Strip

Contrary to Wall Street’s expectations, gambling revenues on the Las Vegas Strip dropped 4% last month. The $686 million haul was depressed by 4.5% lower coin-in at the slots, despite tight hold (9%). Table games fared even worse, with a -17% trend in wagering (baccarat excluded) driving a -20% plunge in casino winnings. Baccarat play plummeted 31.5% but luck was with the house, which saw only a 7.5% decline in win. Contrarily, locals-casinos blossomed, their revenue up 4.5%, propelled by Durango Resort, which continues to do boffo business. Slot revenue of $239.5 million was up 5.5% while table win ($46 million) was flat. Compared to the once-halcyon days of 2019, the Strip was up 29% and locals joints were 31% higher. The January numbers may be somewhat misleading, as end-of-December slot winnings got rolled into the next month (due to a Nevada reporting oddity); making locals numbers look even better and Strip ones marginally less worse.

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This & that

There was a rumble in Manhattan on the 22nd. Proponents and foes of New York City casino descended upon a town hall to duke it out. In this corner, opposed to casinos is state Sen. Liz Krueger. In the other, favoring a megaresort is state Sen. Brad Hoylman-Sigal. “We do need to center the community and insure community members have the opportunity to have their voices heard,” said the latter, adding, “I’m going to be using my involvement with the community advisory committee … to do just that: insure that the proposals—and there are two of them in my district on the west side of Manhattan—are first and foremost beneficial to and desired by the community around it.”

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Caesars on ice; Bally’s “respectable”

Managing expectations was the order of the day for Caesars Entertainment, which had guided Wall Street to expect cash flow of $930 million. That included a 5% revenue disappointment on the Las Vegas Strip, despite 98% occupancy. The quarter could have been better were it not for salary increases (we thought the company had made provision for that; it certainly said it had), construction-related disruptions in New Orleans and Indiana, the loss of 65,000 room nights at the Versailles Tower of Paris-Las Vegas and Colosseum Tower at Caesars Palace, and adverse sports betting hold as punters did well. Caesars execs warned stock boffins not to anticipate too much from 1Q24, saying January was “a debacle” thanks to dreadful weather. In the same breath they said, no matter, it’s “a seasonally slow month.” So which is it?

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North Carolina sports betting booms but addiction worries loom

Dear Readers: For the day we turn over the S&G bully pulpit to Frank Sutton, who airs increasingly frequent concerns that more sports betting equals more disordered gambling. Take it away, Frank.

There are 10.9 billion reasons to consider sports betting a success since the Supreme Court struck down a federal ban against it in 2018. That’s how many dollars in revenue the American Gaming Association said the sports book industry accrued this past year, per Front Office Sports. It was a number that, along with the $119.8 billion countrywide handle from 2023, blew past projections and marked a record high for a single year. Compared to 2022, sportsbook revenue grew a whopping 44.5%, and more than $40 billion alone was bet during 2023’s final financial quarter, 34.4% higher than it was during the same period the prior year.

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Freezing in Pennsylvania, hot in Michigan

Taking a sharp dip in the harsh month of January were Pennsylvania casino grosses. The $252 million of revenue represented a 12% falloff from last year and a 1% dip from 2019. Factor out newer casinos and the picture worsens: -13% from 2023 and -18% from 2019. With the exception of Parx Shippensburg ($2.5 million, +438%), everybody got walloped and some pretty hard. Parx Casino led the state with $44 million but took a 13% hit. Other Philadelphia casinos fared better with the exception of Harrah’s Philadelphia, which plunged 21.5% to $10.5 million. Valley Forge Resort inched a few dollars ahead of Harrah’s (above), grossing $10.5 million, while Live Philadelphia ($20 million, -9%) bested Rivers Philadelphia ($18 million, -8%).

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Atlantic City feels chilly; Old dog, new tricks

Those scenic beaches of storied Atlantic City felt January’s cold winds last month, down 3% to $205 million. Table game play was actually more aggressive, with casinos winning 3% more ($59 million) and 6% bigger volume of wagering. But slots took that back and more, as revenue fell 6% to $143 million and coin-in declined 6% as well. But casinos did 16% better than in 2019. So things could have been a great deal worse.

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“Dreams do come true in Vegas”

Bobby Vegas: Friends Don’t Let Friends Play Triple-Zero Roulette

People come to Vegas often wanting to fulfill a fantasy, such as winning a million, living the high life, or experiencing their favorite celebrity. Well, here’s mine.

Let’s dream big — like hanging out with superstar Bruno Mars in a posh bar and lounge he curated. One that feels like some luxe fantasy-penthouse sunken living room in the round, saturated with some out-of-this-world live and DJ music and then (heck, let’s go for broke) toss in dancing with Janelle Monae and her friends on an intimate carpeted dance floor.

Oh wait. I did that. On a Monday night no less. With a few close friends —
maybe a couple of hundred of them.

This is Vegas, baby! At. Its. Best.

Monday wasn’t just the day after the Super Bowl. It was opening night of Bruno’s ultra-lounge, the Pinky Ring, at Bellagio. And as a major Bruno fan, I had to be there. No matter what.

For those not in the know, “Pinky Ring” is from Mars’ iconic worldwide smash hit “24K Magic” and the now-unforgettable line, “Players, put your pinky rings up to the moon! Girls, what y’all tryna do?”

You can go rock with the Super Bowl champions and Marshmello. Fine with me. This, however, is my fantasy come true and as Bruno declared on Monday, “This is it! And you’re never gonna hear anything like the Hooligans. I’ve traveled all around the world with these guys and they are tight!”

No doubt.

I was shocked and incredibly excited to learn that Bruno Mars was going to bring his own personal style to a venue that’s so special and intimate, it’s hard to believe that the Master of 24K Magic was sitting a mere 30 feet away, while we mortals got down to some fantastic beats blasting out of his killer band.

The super-tight Hooligans run the gamut from jazz-infused funk jams to epic covers, from Curtis Mayfield and Michael Jackson to Motown classics or Cheryl Lynn’s “Got To Be Real.” And man, do they lay down the groove.

The pre-opening Saturday night was a private star-studded event with Janelle Monae singing “Tightrope” in a duet with Bruno, all while Lady Gaga, T Pain, and others rocked along.

Oh, did I mention all his Grammys are on display as you walk in?

Though there’s no guarantee Bruno will sing, he did two numbers on Monday, including Marvin Gaye’s “Let’s Get It on.”

So beat feet to Bellagio and be sure you catch this stellar experience. The Hooligans are playing for two weeks, through Sunday the 25th. Other guests drop in, like Lady Gaga’s bandleader and horn player Brian Newman, sometimes even Bruno.

The Pinky Ring opens at 5 p.m. and closes at 2 a.m., 3 on the weekends. The music starts around 9. Arrive early for the great DJs and dancing, where you’ll find me. Tables for two or four go quickly. Seatings are for two hours and minimum spend is a ridiculously low $75 per person. And like his show, no phones or videos. What happens in the Pinky Ring stays in the Pinky Ring.

There’s some standing room only. And that, for now, is free.

Be there. You’ll never forget it.

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Penn underperforms, as does Louisiana

Did somebody screw the pooch at Penn Entertainment? It appears to have flubbed its ESPN Bet launch, judging by its 4Q23 numbers, which were an interactive bath in red ink. J.P. Morgan analyst Joseph Greff called them “much (much) larger … than what we were expecting … We think investors were bracing for a wide range of Interactive losses, but the magnitude of the absolute dollar value is, we think, surprising.” He had anticipated a loss of $180 million (the Wall Stree consensus was $151 million) and Penn came in -$334 million. Wow. We knew ESPN Bet-related promos had been—well, the word “generous” is inadequate. But we never anticipated this. And when you’ve lost Greff you’ve lost Wall Street.

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Boardwalk betrayal; Mega-Jottings

Atlantic City dip; Another strike in Motown?

Looking forward to a smoke-free day in Atlantic City? Better forget about it, at least if state Sen. John Burzichelli (D) gets his way. In a stunning betrayal of casino workers, he’s proposing a bullshit ‘reduction’ of casino smoking areas that would make even fewer allowances for health than the industry plan put forward by sock-puppet state Sen. Vince Polistina (D). While table games would be in enclosed spaces staffed by “volunteers,” it’s basically open season on slot workers and customers: “it would allow smoking in unenclosed areas of the casino floor that contain slot machines and are designated as smoking areas that are more than 15 feet away from table games staffed by live dealers.” In order words, casino employees are so many human sacrifices for Big Gaming’s Trenton pawns.

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MGM “confusing”; January the new cruelest month

Perplexity was the mood of J.P. Morgan analyst Joseph Greff when confronted with MGM Resorts International‘s 4Q23 numbers, as “there were lots of moving parts.” Cash flow came in 1% higher than expected and Las Vegas Strip-derived cash flow of $864 million was way above Greff’s $794 million forecast. However, he discounted $50 million of that due to high hold percentages in table games (read: players were exceptionally unlucky). Macao generated cash flow of $262 million where Greff had expected $236 million. And regional cash flow—$233 million—well undershot Greff’s anticipated $264 million, J.P. Morgan having admittedly underestimated the hit MGM Grand Detroit would take from last autumn’s strike. Greff’s price target edged up two dollars to $54/share, a conservative move.

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