Category: Casino News

According to Deutsche Bank analyst Carlo Santarelli, the 1Q22 numbers for MGM Resorts International were “better than forecast” in Las Vegas and regionally, nor as bad as expected from Macao. Losses from BetMGM were worse than anticipated. Santarelli predicted cash flow of $633 million and Leo the Lion delivered $670 million. The analyst only expects things to get better on the Las Vegas Strip, with high-margin The Cosmopolitan of Las Vegas displacing low-margin The Mirage. BetMGM was a $184 million drag on the balance sheet, more than the $162 million Santarelli was expecting but “the shortfall was not entirely surprising, given the lower hold experienced on the sports side in the period, as well as the spend levels associated with the New York launch. Importantly, MGM continues to outperform in the longer term margin friendly iCasino segment,” he wrote. MGM China contributed [?] a $26 million negative ROI.

$75 million or else. That’s extortionate Chicago Mayor Lori Lightfoot‘s latest demand of casino applicants. If you win the bid, fork over the cash. Her Dishonor might settle for ‘only’ $40 million on the barrelhead, followed up by a $2 million ransom the subsequent year. So far only Bally’s Corp. has offered upfront money—$25 million—while its rivals want Lightfoot to settle for the city’s cut on the back end. With the Chicago Tribune (Bally’s), waterfront (Rush Street Gaming), and Soldier Field area (Hard Rock International) sites all being blown raspberries by aldermen and public alike, some are even advocating putting McCormick Place back into play.

They won’t have much time. Chicago Casino Committee Chairman Tom Tunney wants a final selection by May, with the goal of having the Illinois Gaming Board sign off on the choice by autumn. In the meantime, Lightfoot has been caught playing footsie with Bally’s, charging it only one application fee for two sites. (Rush Street had to pay twice over.) Lightfoot’s office cited technicalities to justify the favorable treatment while Bally’s Chairman Soo Kim, citing his deep pockets, said, “We paid the fees that were asked. Don’t you think we would have sent another $300,000 if they asked us to?” Certainly—but Kim wasn’t asked, another indication of which way Lightfoot is leaning.

Pay no attention to the men behind the curtain. There’s nothing wrong with the idea of a casino megaresort in the Willets Point area, near Citi Field. It’s far preferable to some of the other New York City sites that have been mooted. But the way New York Mets owner Steve Cohen and Las Vegas Sands have been behaving, you’d think it needed to be a well-kept secret. To call their behavior disingenuous would something of an understatement. Though he’d been known to be in talks with Sands, Cohen said there was ‘no formal relationship‘ between the duo. Imagine our surprise when it turned out that Sands lobbyists were sharing an office with Crown Mets LLC and Cohen’s Point 72 firm. No relationship, huh? They had also been acting in concert when it came to lobbying lawmakers, forming a pincer movement.

Atlantic City casinos leapt 17% from March 2021, grossing $216.5 million. Except for Tropicana Atlantic City, which was flat at $19 million, almost everyone posted relatively impressive gains. Borgata‘s $55 million (+18%) predictably topped the market, while Hard Rock Atlantic City (shown) surged 28% to $39 million. Ocean Casino Resort was up 26% to $25.5 million. Harrah’s Resort performed best of the Caesars Entertainment threesome, climbing 12.5% to $20 million, while Caesars Atlantic City dipped 4.5% down to $18.5 million. Bunched together at the bottom were Bally’s Atlantic City, Resorts Atlantic City and Golden Nugget, in that order. Bally’s seems to be showing momentum, moving up two notches in the hierarchy, gaining 36% on a gross of $13.5 million, while Resorts notched $13 million, an 8% hike and the Nugget brought up the rear with $12.5 million, a 16% climb nevertheless.

Golden Nugget Atlantic City was packing them in with a ‘george’ promotion. Let our East Coast correspondent tell the tale: “It was extremely busy Sunday afternoon in their atrium for the BMW X-5 giveaway. They called six names and three were MIA, so they called three more, and two of those also not there. Each person got a sealed envelope and when they got six there, one lucky person got the car, the others free slot/table play.” The next Hard Rock Atlantic City promo? Logo umbrellas that have flashlights embedded in the handles. Not as george as a BMW but darned useful.