Category: Casino News

Thanks in part to a boost from the Las Vegas Grand Prix, high-end Wynn Resorts was able to “squash forecasts,” according to an impressed Carlo Santarelli of Deutsche Bank. His price target on WYNN stock leapt from $124/share to $132 on the strength of a 4Q23 that surpassed Wall Street‘s expectations. (J.P. Morgan analyst Joseph Greff added $5 to his $113/share price target.) Wynn Resorts brought in fourth-quarter cash flow of $632 million, $69 million more than Street analysts anticipated. Wynn’s Macao assets outperformed, with the older ones achieving 74% of pre-Covid cash-flow volume: “We believe this is likely to put to rest some of the structural concerns around the Peninsula in general.” The company’s Chinese flotilla also maintained its share (14.5%) of the mass market.

Fourth-quarter results from the far-flung empire of Las Vegas Sands were lauded by J.P. Morgan analyst Joseph Greff as “solid.” He wrote that they “should be viewed favorably in relation to recently subdued investors’ expectations and China-macro-concern-driven awful investor sentiment.” Looking ahead to this year and the next, he projected continued mass-market-propelled growth for Sands in both Macao and especially Singapore (which is really driving the bus right now), where Sands enjoys a duopoly.

As I write this, I’m off the coast of Florida, aboard the Icon of the Seas, presently undergoing a somewhat shaky shakedown cruise. Unfortunately, Yr. Humble Blogger has been stricken, not with mal de mer, but with the aftereffects of what was probably undercooked food, of unknown provenance. As such, I’m ill-positioned to provide any more industry news and analysis until we dock on Friday. Wednesday’s dinner was spent surrounded by loathsome, loudmouthed Wall Street fatcats. Now I now what Hell is like and really don’t want to go there. Perhaps that’s what made me ill.

Please disregard the headlines today whining about Atlantic City casino grosses for December. They are 8% higher than 2022 and 11.5% than 2019, before the Great Pandemic supposedly drove everyone home—and into the arms of these same casinos’ Web alternatives. The brick-and-mortar tally was $232.5 million. We often treat the three Caesars Entertainment casinos almost as an afterthought (as do customers), so we should give them pride of place when discussing December’s data. Tropicana Atlantic City (pictured) leapt 15% to $21 million and Caesars Atlantic City jumped 13% to $19 million. Harrah’s Resort couldn’t quite keep pace, up 3% but making $21 million.

It may be snowy this week in Chicago but the casino news is warm: Illinois gambling halls closed out 2023 with their best month of the year ($141 million). Much of this was driven by fresh product. They were up 3% from 2022 … and 14% down from 2019. But the latter number swung to -10% when adjusted to a same-store basis. Four new casinos in one year will do that.