Category: Casino News

Along with Resorts Atlantic City, the Golden Nugget (seen above in its Trump Marina days) has inked a new labor pact with Unite-Here, bringing to an end any uncertainty about a strike on the Boardwalk. Workers get substantial pay increases, as they desired, and casino bosses get four years of peace. Union local prexy Robert McDevitt called the negotiations “long and difficult” but everyone is making nice in the wake of the deal. “We were one of the final casinos that was approached for negotiations and we are proud it was a swift and amicable agreement,” remarked Nugget General Manager Tom Pohlman. Resorts’ durable President Mark Giannantonio echoed Pohlman: “We’re really thrilled for the employees. They’ve been working really hard for us, and now we’re happy we can put this behind us and move forward with our business.” Only that remains is formal ratification of the contract, which should be a slam dunk.

Continue reading Peace in Atlantic City; Storm over Vegas

“No gaming consumer slowdown, at least not yet.” That was the headline of JP Morgan analyst Joseph Greff‘s appraisal of Boyd Gaming‘s 2Q22 earnings call. Loyalty players and core customers remain steadfast, as Boyd grew revenues 4% “despite a tough year-over-year comparison.” Unrated players are the Achilles heel, although Greff (rightly) theorizes that their 2Q21 gambling spree “was likely goosed up from stimulus checks.” While unrated play is as much as 40% of overall win, it’s not very profitable in the final analysis. Greff ratcheted his price target on BYD from $83/share down to $71 “despite limited evidence that the U.S. regional gaming consumer is slowing in any meaningful way.” Why? He predicts a 10% revenue decline next year, with serious consequences for the bottom line.

Even so, Greff likes Boyd’s regional diversity “which generates attractive free cash flow.” He’s (not unreasonably) factoring in a “mild” recession, which may be already here, and which he freely admits could be worse than modeled. Fortunately for Boyd, it is not in a position where debt reduction is necessary. Or as CEO Keith Smith put it, “We’re dealing in an uncertain environment and economy, but everything we see says the business is pretty stable. If something were to happen, given our current financial strength, we’re not losing sleep.”

Continue reading Boyd outperforms; Vegas airport sets record, joblessness drops

Despite attenuated revenues of $1.2 billion in the second quarter, Las Vegas Sands was the beneficiary of what one analyst termed “creeping expectations” on Wall Street. Or, as Deutsche Bank‘s Carlo Santarelli put, “we continue to believe LVS represents one of the more compelling medium- to longer-term risk-reward stories in our coverage universe.” How come? Managed expectations, in large part. Losses in Macao were not as bad as feared and Marina Bay Sands in Singapore (55% of the company’s equity now) is prompting higher forecasts, as the city-state loosens its Covid-19 restrictions. Regarding Macao, “management had little to say” but numbers were “soft” and the company expects to lose $110 million a month in cash flow and rents as long as the current shutdown persists.

Continue reading “Standout” at Sands; Station challenges South Point

There’s so much news today we almost don’t know where to begin. But we’ll start with Atlantic City, which reported a 2% increase in casino revenue, to $229 million. Internet gambling and sports betting chipped in another $169 million. One of the biggest beneficiaries was Bally’s Atlantic City (above), which leapt 20% to $13.5 million. Other coffee achievers were Ocean Casino Resort, which catapulted 29.5% to $30 million, and Hard Rock Atlantic City, scarcely to be outdone with a 26.5% increase to $44.5 million. Borgata actually lost market share (or was unlucky at the tables), down 4% to $54 million. Of the Caesars Entertainment threesome, only Tropicana Atlantic City was revenue-positive, up 1.5% to $21.5 million. Harrah’s Resort was 5.5% down to $20 million and Caesars Atlantic City, formerly the most volatile house in town, ceded just 4% to $19 million. Resorts Atlantic City was flat at $14 million and Golden Nugget nudged up 3.5% to a last-place $12.5 million. Overall, slot revenue climbed 11% to $171 million on 12% more coin-in, while tables saw 4% less win but on 7% less wagering.

Continue reading Atlantic City strong; Station’s demolition derby; De$anti$ hits jackpot; Mega-Jottings

Prior to the current Covid-19 lockdown, casinos in Macao were already engaged in a $600 million/month cash burn, thanks to the China‘s zero-tolerance policy on the disease. That will only get worse now that access to customers has been shut off entirely, needless to say. Given the former and potential money-making puissance of Macao, the six operators have no chance but to hunker down and absorb the punishment, especially as they wait the six months before their licenses are renewed, as appears inevitable. (And why not?) “The sad part is that it’s going to be years until business comes back to where it used to be,” observed gaming pundit Alidad Tash. How many years remains to be seen but the smart money is on later rather than sooner.

Continue reading Insolvency in Macao; Sports betting everywhere