Category: Casino News

Massachusetts gaming revenue accelerated to $96 million last month, 23% higher than 2019. Encore Boston Harbor vaulted 37% to $63 million—yes, two-thirds of the statewide gross and well above Deutsche Bank‘s forecast of $55 million. Despite Wynn Resorts‘ dominance, Plainridge Park managed to add 4.5% to its 2019 numbers, grossing $12 million (Deutsche Bank was right on the money with that one). MGM Springfield didn’t exactly struggle but it was only 1% up, winning $21.5 million. Back when the Bay State was initially in play, Wynn sussed out Boston as a real gold mine and has been triumphantly ratified.

American Gaming Systems has been all over the news lately and not in a good way. 15 players are lodging complaints against the online-slot maker. What did they do wrong? Basically, they made the mistake of beating the AGS house. The latter isn’t paying, chalking up player victories to ‘a bug’ in the system, that old saw. This is the kind of thing that gives Internet gambling a black eye and AGS should definitely be investigated further than it has. In one case, player Lisa Piluso won $100,000, was offered $280 and later had that upped to $1,000, presumably AGS’ idea of being george. To us, it doesn’t matter a fig whether the AGS software was corrupted (how very confidence-inspiring) or not. Players expect a game to be on the square and should get one that is.

Wynn Resorts CEO Matt Maddox is leaving the building, effective Jan. 31. This shockeroo, which inspired a banner headline in the Las Vegas Review-Journal, was trundled out just minutes before the 3Q21 earnings call. Maddox will be succeeded by veteran CFO Craig Billings, who will have the experience and more than enough time for an orderly changeover. Given that former Encore Boston Harbor President Brian Gullbrants is now at the helm of Wynncore, one need not fear that the company will miss a step.

Maddox conceded that he got off to a “rough start” with some, inheriting his job under the cloud of the Steve Wynn sex scandal, “one of the messiest transitions in corporate history.” He didn’t impress us in the early going but proved a steady and proactive leader during the Covid-19 pandemic. Gaming analysts gave rave reviews to both Maddox and Billings, predicting a bright future for Wynn Resorts. As one penned, “barring conspiracy theories around the departure of Mr. Maddox, most notably the implications for the Macau process, of which we think there are virtually none, we expect a smooth transition.”

DraftKings divided analysts with its 3Q21 earnings report. Credit Suisse pundit Ben Chaiken said the company was “moving the ball down the field.” That’s despite revenues of $212 million that well undershot Wall Street‘s expected $238 million, rather like a downfield pass that was picked off for an interception. Chaiken blamed the shortfall on low hold on NFL games and an upswing in marketing costs. DraftKings predicts it will bring in $1.7 billion to $1.9 billion next year, not including money from states that have yet to add sports betting. The Street’s consensus is it will be $1.8 billion inclusive of new markets. Chaiken thinks that DKNG will next try to buy or build a media component, as “the next major theme in sports betting will be the emphasis on sports media, which can be used to more efficiently acquire and retain customers.” If a deal can’t be struck with ESPN, look for a purchase of The Athletic.

Richmond voters narrowly chose to cut off their nose to spite their face, voting 51.5% against the Urban One casino proposal. Since casinos were approved by at least 65% in four other Virginia cities in 2020, the resounding question is “Why?” True, an endorsement of Urban One by unpopular gubernatorial candidate Terry McAuliffe (D) probably didn’t help. His victorious opponent, casino investor Glenn Youngkin (R) kept mum on the issue. Although adversaries of Urban One were outspent 10-1, they had the benefit of a wall of NIMBY sentiment at their backs. They were also accused of stoking racial animus and with Urban One polling poorly in predominantly white areas that strategy, if deliberate, may have worked. As of this morning, the casino industry—at least in the private sector—remains an all-white-ownership province.

Hard Rock International CEO Jim Allen (left) is bullish on the New York City market, if not downright aggressive. In maybe the highlight to come out of the East Coast Gaming Congress, Allen asserted his company’s interest in a New York City casino—and also one at the Meadowlands, only nine miles away. Granted, breaking Atlantic City‘s casino monopoly (from which Hard Rock currently benefits) would take a major upheaval in the New Jersey Lege, as well as a constitutional amendment, but we’re not counting Allen out. This double-whammy strategy with respect to NYC (whose casino licenses will be issued in 2023) would normally have us saying the company has drunk its bathwater … but there’s no better brand in gaming nowadays than Hard Rock, so if anybody could pull this parlay off, they could. Also, if any brand belongs in or near Manhattan, Hard Rock has the vibe for it.

“We’re interested in both markets, and if God is good enough to allow us to operate in both, we would be happy to do so,” Allen told reporter Wayne Parry, no doubt cognizant of the fact that Garden State voters nixed a Meadowlands casino in 2016, so he’s bucking the odds. He added he was “100%” certain that New York City could support three casinos, pointing out that Atlantic City is carrying nine. “It may be possible that a market as robust as metro New York City could support two properties,” said UNLV gaming supremo David G. Schwartz, waxing more skeptical than Allen. Actually, the Big Apple does support two casinos, if VLT-only Resorts World New York and MGM Empire City Yonkers count. (We agree with Allen, presuming that the third casino is more attractive than a converted racetrack.)