Category: Casino News

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Atlantic City: Boardwalk boffo, sports betting bigger still; DeSantis wins

September was a breakout month for Atlantic City casinos, which surged 11% over 2019 to $248.5 million. Slot win was 14% higher on 13% more coin-in and table games garnered 4% more on 4% greater wagering, so luck was with the house. Traditional market leader Borgata didn’t fare quite as well, up 5% to $60 million on 3% less table win (despite very high hold and due to 20% less wagering). Borgata slots made up the difference, winning 11% more on 7% higher coin-in. The Caesars Entertainment threesome was 4% richer, with table win +6% (on 7% greater wagering) and slots up 6% despite only 4% more coin-in. Harrah’s Resort was out in front with $27.5 million (+4%), followed by Tropicana Atlantic City‘s $24.5 million (-4.5%), then Caesars Atlantic City‘s $22 million, +14%.

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Biden wades into Florida swamp; New eras at Palms, Ocean

Intentionally or not, President Joe Biden (D) has done Florida Gov. Ron DeSantis (R) a solid. He wants the federal judiciary to dismiss litigation that would invalidate DeSantis’ controversial compact with the Seminole Tribe. As amusing as the spectacle of Biden and DeSantis in bed together is, the motive may have more to do with launching a preemptive strike in defense of what is a very shaky Department of the Interior case for tribal online sports betting. The Biden administration’s rather daffy interpretation of IGRA (or rather, supine acceptance of the Florida Legislature’s daffy translation) would extend “tribal lands” infinitely into cyberspace, at least within state boundaries. Just imagine the effect if the same logic is applied to tribal OSB in California in a year’s time.

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Encore dominates Massachusetts; Penn touted; Fontainebleau jilted

Gaming revenues in Massachusetts were up 10% from September 2019, reaching $89 million. The lion’s share (65%) went to Encore Boston Harbor, leaping 17.5% to $57.5 million—$7 million more than Deutsche Bank analyst Carlo Santarelli expected. (Encore also disclosed some of its secret formulae for success today.) It won $1.9 million a day, to put that in perspective, $31.5 million from slots and $26 million from tables. To the south, Plainridge Park was in line with expectations, grossing $12 million for a 4% gain. MGM Springfield, however, continues to struggle for an identity, down 8% from 2019 and grossing $19.5 million. Slot play was solid, up 6%, but the casino took a whupping at the tables, plunging 48%. Table play is traditionally this property’s weak link and you wonder how much longer MGM can afford it.

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Indiana wins big, Missouri too; Pennsylvania guv blows smoke

While the American economy overall may be a disappointment for some, Big Gaming has nothing of which to complain. Indiana is coming off another bully month, up 16% from 2019, for an overall gross of $201 million, driven in no small part by new Hard Rock Gary. It pulled in $29.5 million. Not to be outdone, Horseshoe Hammond won $33 million, albeit 4% off its 2019 pace. Ameristar East Chicago gained 24% but remained a solid third with $21 million. Blue Chip slipped 7.5% to $12 million. Elsewhere the numbers were good for almost everyone, although “everyone” wouldn’t include French Lick Resort, going down 15% to $6.5 million. Rising Star also set, -10% to $4 million.

All other casinos and racinos were revenue-positive, such as Indiana Grand, up 13% to $23.5 million, while Hoosier Downs cantered +17% to $18.5 million. Caesars Southern Indiana, now under Cherokee management, didn’t miss a step either, up 16% to $19.5 million. Tropicana Evansville was remotely in this league, with $13 million, an 11.5% gain, and although Hollywood Lawrenceburg only budged +1.5% that was good enough for $13.5 million. Belterra Resort nudged +3.5% to $8 million, rounding out the southern tier.

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Disaster at Ocean; Ready when you are, CB; Gruden gone

In a development that portends nothing but ill for Atlantic City, the CEO of Ocean Casino Resort, Terry Glebocki has resigned. She also leaves the Casino Association of New Jersey rudderless, no doubt to be replaced in both roles by someone safely white and male. No reason was given for Glebocki’s sudden departure, which was disclosed to staff yesterday morning. Frankly, we’d been fearing such news ever since Marian Illitch bought a half-interest in the casino. While Luxor Capital nominally owns the keys to Ocean, Glebocki was their gal and we don’t see them as the ones giving her the shove. The former CFO of Ocean, née Revel, Glebocki had held the top spot for two years, ones in which the casino’s fortunes dramatically reversed, with results that have been getting better and better with each passing month. Now … uncertainty and unease.

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Massachusetts talks tough; Big improvements seen at Bally’s A.C.

One of the strongest threads running through Global Gaming Expo was the fear of regulatory backlash against over-aggressive gambling marketing (especially with regard to sports betting). Well, Massachusetts doesn’t have sports betting yet but Bay State regulators are already looking askance at casino advertising. After tracking problem gamblers for the last six years, the Massachusetts Gaming Commission isn’t liking what it’s seeing. “Limit gambling advertising and availability, especially in lower socioeconomic neighborhoods, or groups that may be at increased risk of experiencing gambling harms,” was one of the recommendations made to the MGC. This sounds very much like some of the ad curbs that have been put in place in Spain and Great Britain. It wouldn’t be without local precedent, Attorney General Maura Healey having cracked down on DraftKings and FanDuel in the past.

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Dream comes true; Recovery stays strong; DraftKings’ clock cleaned

If they can scrape together $500 million (which shouldn’t be a problem in this investment climate), developers David Daneshforooz and Bill Shopoff have the Clark County Commission‘s blessing to move forward with the Dream casino-hotel. Despite a raft of security concerns that the Las Vegas Review-Journal summarized as “potential illegal drone flying, laser lights, shooting attacks and even bombs hidden in garbage trucks,” commissioners approved it 6-1. The project will have 527 hotel rooms but at present seems to lack a target audience, with Shopoff rather wishfully stating Dream “will find our following” among Las Vegas tourists put off by multi-thousand-room resorts. Dream will be good news for the Pinball Hall of Fame, which will be its next-door neighbor and might be close enough to Allegiant Stadium to give Raider Nation a place to crash.

Shopoff and Daneshforooz will spend an extra $10 million to allay the worries of the TSA and a coalition of major airlines, none of whom is clearly on board with the new, improved Dream. The proposed security wall with McCarran International Airport will be reinforced and the hotel tower itself will be moved further away from the airport and closer to Las Vegas Boulevard. A security checkpoint and other deterrents will be added. There won’t be any guest-room balconies anymore, the pool will be ringed with a high fence and the parking garage will be fully enclosed. Oh, and if you break a window, security will automatically be alerted. It may be Fort Dream, but it’s also several reassuring steps in the right direction.

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G2E, The morning after: Guarded optimism

Photo: Amar Barta

Exhibitors are folding their tents and weary journalists are packing it in as another Global Gaming Expo draws to a close, having kicked off inauspiciously with an anti-vaccine riot by “Covidiots” at The Cosmopolitan of Las Vegas. Looking back on the show, Truist Securities analyst Barry Jonas reported that attendance was less than 50% of previous expos (the absence of the international cohort didn’t help). Still, he saw enthusiasm, particularly from Las Vegas hoteliers, whose rooms and gambling floors were “packed.” Manufacturers had cause for optimism, too, as upward trends in gross gaming revenue gave them hope that casinos would loosen their purse strings and buy new machines next year. Interest in interactive gaming was described as a “feeding frenzy.” Revenue comparisons will get tougher next year, Jonas continued, and labor continues to be an issue (which we note is largely one of management’s own making). Also, promotional spending on sports betting is “unsustainable” and “leading to questions about a shakeout and more consolidation.”

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Business comeback fuels Strip; Massachusetts fumbles sports betting

Las Vegas Strip room rates continue to demonstrate sustained strength through October and, get this, midweek traffic is driving the bus. Overall, weekday prices are up 22% versus 17% on weekends. MGM Resorts International is the pace car, +24% midweek and up 10% on the weekend for the Oct. 24-30 period. Caesars Entertainment is up 17% midweek and 24% on weekends, while Wynncore is surging 23% on weekdays but surprisingly off a point on the weekend. Another surprise is that Venelazzo is, compared to 2019, almost flat midweek, up just 2% but recoups that on the weekend, hopping 40%.

Analyst Joseph Greff and his JP Morgan colleagues recently studied the travel industry and were able to confirm that a recovery is underway but were unable to nail down a consensus for when it would leave the launch pad. Greff’s bottom line was “business travel restarts will occur over the next few quarters with a spike in 1Q22.” A plus for hoteliers: Room rates will drift upward after the pandemic. Not so good: Technological changes (as in virtual meetings) are here to stay. Not coincidentally, travel budgets for 2022 will be lower than expected. Resorts World Las Vegas can rejoice in the news that Hilton Hotels “was the clear favorite to gain share post-pandemic, surprising to us given the lopsidedness of the results.”

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Mega-jottings for the weekend

It didn’t take Blackstone Group long to start spending the ‘mad money’ it got for selling The Cosmopolitan of Las Vegas. It plunked down $305 million for all 15 hotels owned by Condor Hospitality Trust. Dare we suggest that Blackstone got more bang for the buck than did the buyers of the Cosmo? … We’ll have to wait until Nov. 17 to find out who gets the Terre Haute casino license but the early renderings are intriguing. Full House Resorts shows by far the most architectural imagination and flair while low-roller Premier Gaming Group brings up the rear, in more ways than one. All the contenders bring more credibility to the table than did Spectacle Entertainment or shiftless Lucy Luck Gaming … Churchill Downs is getting pretty in-your-face with its Derby City casino (in all but name) in downtown Louisville. Located in a former US Bank (above), it will feature a wraparound video marquee and a plethora of “historical racing” machines. Funding will come at least in part from the $197 million sale of an Illinois racetrack to the Chicago Bears … Awana Spa at Resorts World Las Vegas tops Business Insider‘s list of the 10 best hotel spas in the U.S. and is the only casino-based spa to make the grade. It definitely offers something different: “The spa showcases a theater-inspired heated room with aromatherapy, choreographed music, lighting, and dancing towels, and it’s as avant garde as it is relaxing.” You can keep the avant-garde, we just want the relaxation … Casino de Monte Carlo is back as a must-see spot thanks to upcoming James Bond vehicle No Time to Die. Expressions of interest in the venerable casino are up 910%, although we think 007 would prefer someplace less trammeled … Sports betting went live at Mohegan Sun and Foxwoods Resort Casino a week sooner than anticipated. Retail betting is a ‘go’ but OSB is still a ways off. The Connecticut Lottery will participate via 10 Sportech OTBs and five other locations to be announced.

Quote of the Day: “The time is always ripe to do right.”—Dr. Martin Luther King, Jr.