It’s a good thing that news in the casino industry is virtually nonexistent today. S&G has been sidelined by a ruptured pipe that burst midday on Christmas, dampening our Yuletide spirit literally and figuratively. Whilst we wait for the plumber, here’s a bit of Christmas spirit from MGM Resorts International. Besides, where else …
Continue reading Ho Ho H2OIt’s time to reward those who have been nice and offer appropriate gifts to the naughty. So, without further ado, we play Santa Claus to the casino industry …
Continue reading Christmas wishes
We begin today with kudos to a non-casino entrepreneur, Bart Blatstein, who has erected a 150-foot Christmas tree in front of the Showboat. It’s said to be the first large-scale tree in Boardwalk history. Thank you, sir. And to get the comedy relief out of the way, our Atlantic City correspondent paid a visit to Bally’s Atlantic City and discovered another reason why it’s mired in last place. His visit began well: “We asked for a room close to the elevator with a shower (not a bathtub). We got the first room close to the elevator, with excellent ocean-front views.”
Things started to unravel from thereon. “On Sunday, I went up to their sixth floor restaurant level. Longo’s had hours posted, Sunday opens at 5 p.m. Their (alleged) VIP lounge closes at 5 p.m. but my wife refuses to go there after our last experience, so we missed the choice of ham & cheese or a hamburger. We went up at 5:30 and Longo’s never opened. Guy Fieri’s was closed. Their other restaurant closes at 2 p.m. So, the only choices for food on Sunday at 5:30 are Dunkin Donuts, their pizza place or their sandwich shop. Is Bally’s supposed to be a ‘major casino’? Not to us it’s not.” Chicagoans, be afraid. Be very afraid.
Continue reading Christmas on the Boardwalk; Miller smacks Gray Lady
Regulators in Massachusetts struck an unsatisfactory compromise with Penn Entertainment. The latter’s Plainridge Park was granted a sports book license, conditional upon a suitability investigation of Barstool Sports founder—and the new face of Penn—Dave Portnoy. “We are very comfortable with there being an investigation,” Penn CEO Jay Snowden told regulators, somehow managing to keep a straight face. Snowden probably left his Barstool T-shirt, which he wears around the office (it’s a fact), in the dungeon where he plays submissive to Portnoy’s dominatrix. Why the Massachusetts Gaming Commission should need to probe into Portnoy is a mystery to us. His unsuitability is out in the open for everyone to see. How is it that Steve Wynn could not get a Bay State gaming license but Portnoy might? We sense a double standard at work. A license, once issued to Penn, will be very hard to claw back.
Continue reading Penn problems; Maryland sports bets boffo; Oscar pix
Heaven be praised for the coming of 2023, not because 2022 was bad (quite the contrary) but because Wall Street is addicted to measuring this year against 2019, not 2021 … which can be quite crazy-making. By that yardstick, Pennsylvania casinos would appear to be staggering, -15%. But when measured against last year, they’re languishing only mildly, down 3% last month. Newcomers tended to grow (more of that later) and incumbents lost market share. Even after a 6% slippage, Parx Casino impressed with $46 million and Wind Creek Bethlehem notched $40.5 million, -2.5%. The cutthroat Philadelphia market is owned by Parx while the best of the rest was Philadelphia Live with $19 million, up a resurgent 19% and a few hundred thousand clams in front of Rivers Philadelphia, which is 7% off last year’s pace. Harrah’s Philadelphia plunged 16% to $12 million and little Valley Forge Resort tumbled 16.5% to $9.5 million.
Continue reading Pennsylvania, Michigan cool; Cuban covets Texas casino
November was a metaphorically warm month for Atlantic City, whose casino revenues grew 4% from last year, reaching $214.5 million. Spoiler alert, Borgata was way out front with $55 million, leaping 14%. Hard Rock Atlantic City dimmed 5% to a still-impressive $35.5 million and Ocean Casino Resort (pictured) jumped 9% to get uncomfortably close to second place at $31 million. Harrah’s Resort faded 6% but still led the Caesars Entertainment threesome with $21 million. Caesars Atlantic City banked $19 million, a 16.5% surge, while Tropicana Atlantic City climbed 2% to a hair over $19 million. Among the have-nots, Resorts Atlantic City fared best, climbing 3% to $12.5 million. Golden Nugget ceded 5% to hit $11 million and Bally’s Atlantic City sank 10% to land in last place with a symmetrical $10 million. Yup, those Chicago revenue projections sure look on the money. (Not.)
Continue reading Atlantic City hops; NV regulators take a dive; Vagina monologue
Both Caesars Entertainment and Penn Entertainment lost traction yesterday on Wall Street after Bank of America analyst Shaun Kelley downgraded the casino giants. His primary concern was a potential downturn in gaming, due to larger macroeconomic issues, that has yet to manifest itself. Kelly reset his price target for CZR to $55 and PENN to $40. Presently, Caesars is trading at $48.30/share and Penn is languishing at $32.94. Noting that casinos were the largest “over-earners” compared to the pre-Covid economy, Kelley fretted that “unlike other areas in consumer discretionary [spending], estimates have not yet come down, leaving potential risk should the consumer soften.” Given the extensive regional exposure of both companies, should non-Las Vegas casinos weaken first (as history suggests they will), Penn and Caesars would have their butts hanging out in the breeze.
Continue reading Caesars, Penn dimmed; Barstool fined; Card room zinged
November was good for casinos in Massachusetts, up 6% from last year to a gross of $93 million. Encore Boston Harbor led the way with $59.5 million, an 8% gain. MGM Springfield chipped in $22 million, up 2% despite an 18% plunge in table winnings. A 9% jump in slot win saved the day. Plainridge Park was nice and steady, up 4% from both last year and 2019 for $11.5 million in the kitty. Wynn Resorts got another piece of good news when WynnBet became the first mobile sports-betting provider to be licensed in the Bay State. Wynn has clearly learned how to do business in Massachusetts, where regulation is taken seriously (unlike Nevada, where regulators bend over and grab their ankles). The Steve Wynn imbroglio was definitely a teaching moment and Wynn Resorts benefited from it. By contrast, MGM’s sports-betting push got pushed back by a vaporous business plan and Plainridge Park’s has a serious problem that can summarized in two simple words: Dave Portnoy. Until and unless Penn Entertainment CEO Jay Snowden overcomes his codependent-abusive relationship with Portnoy, expect regulatory grief to continue.
Continue reading Massachusetts leaps; Holiday season in A.C.; Apollo’s new toy
Casinos in Indiana kept pace with 2021 last month, grossing $196 million. No prizes for guessing who was tops—Hard Rock Northern Indiana with $35.5 million, a 14% leap from the previous November. Horseshoe Hammond fell 16% but hung in there impressively with $26 million, while Ameristar East Chicago slid 14% to $15 million. Michigan-facing Blue Chip dipped 7% to $10 million. Horseshoe Indianapolis performed by far the better of the state’s two racinos, banking $28 million on a 17% surge, far outpacing Harrah’s Hoosier Park‘s $18.5 million, a 7% fade. In the southern tier, tribal Caesars Southern Indiana was up 8% to $19.5 million, not having missed a step since changing hands. Bally’s Evansville climbed 11% to $14 million and French Lick Resort was up 5% to $6 million. Less fortunate were Hollywood Lawrenceburg, down 10% to $13 million, and Belterra Resort, off 3% to $7 million.
Continue reading Indiana flat, Missouri down; Bally’s happy talk; Miller loses it
November was good for casinos in Ohio and Illinois, both of which posted strong numbers, modestly ahead of last year but—in Ohio’s case—still high heavens above 2019. Fresh off its October dethroning of MGM Northfield Park, rival Hollywood Columbus slipped back into second place with $21 million (+3.5%). MGM’s $23 million, an 8% surge, was again good enough for top honors. Third was Jack Cleveland (pictured), flat and incrementally below $21 million. Other strong achievers were Miami Valley Gaming, up 9% to $18.5 million and Scioto Downs, up 5.5% to $18 million. Hard Rock Cincinnati ceded 2.5%, although it grossed $19.5 million just the same. Hollywood Toledo gained 3% to finish at $17.5 million. The weakest performer was Belterra Park, falling 11% to $7 million. Jack Thistledown was flat at $14 million, Hollywood Dayton gained a point to $11 million and Hollywood Mahoning Valley leapt 8.5% to $12.5 million. All in all, a sweet month for Penn Entertainment.
Continue reading Illinois, Ohio still firm; Daffy bill in N.Y.; Raiders collapse