“If you have this amenity and there’s sports betting at the card rooms, you might add 250 jobs and the secondary effect of those jobs. We have over 2,200 employees in the state. They’re great-paying jobs with an average salary above $75,000. They’re able to support their families, and they’re needed in this state.”—Maverick Gaming owner Eric Persson on ending tribal exclusivity to offer sports betting in Washington State.
Category: Casino News
Profile in cowardice; Sheldon Adelson’s ghost
We were sure this was a story from The Onion or the Babylon Bee but, no, it’s really a thing. Rodney Baker has resigned as CEO of Great Canadian Gaming Corp. after bringing disgrace upon it with a vaccination caper that made international headlines. He and his Russian trophy wife Ekaterina (young enough to be his daughter) flew to Yukon then—allegedly—chartered a private plan to the remote town of Beaver Creek. Once there, Baker, who makes $10.5 million a year, and his princess passed themselves off as employees of a local motel (allegedly) in order to qualify for high-priority Covid-19 vaccinations. Once they got what they wanted, they decided to skip town ASAP. Being afflicted with stupidity as well as an overweening sense of entitlement, they made the mistake of asking for a ride to the airport. Red flags went up and pretty soon the Mounties were on the case … and they always get their man.
It would be great to see Canadian authorities throw the book at these two freeloaders but it’s a light book: $1,150 in fines (already levied) and an optional six months in the clink, which seems highly unlikely. Needless to say, public outrage is running high. “We are deeply concerned by the actions of individuals who put our Elders and vulnerable people at risk to jump the line for selfish purposes,” remarked White River First Nation Chief Angela Demit. “Effectively what they did was they put our community and our isolation team at risk,” added Yukon Community Services Minister John Streicker. “I’m pretty angry at the whole thing.” Great Canadian did not comment on Baker’s precipitate departure but perhaps we should give the last word to Mrs. Baker, whose public posture earlier in the pandemic was, “I stay home to be part of the solution. Everyone, stay home. It’s the right thing to do.” Right then, wrong now.
Continue reading Profile in cowardice; Sheldon Adelson’s ghostLife after Adelson; Super Bowl odds revealed
Taking a business-as-usual approach, Las Vegas Sands reported 4Q20 earnings and JP Morgan analyst Joseph Greff wasn’t blown away, writing that “we, like most investors, see the quarter and any outlook commentary offering little in the way of positive developments for Macau … given recent COVID-19 infection spikes in China and ensuing tightened control over tourist visa issuance for mainlanders to visit Macau.” Given the rampant nature of Coronavirus, Greff foresees but a “modest” boost from Chinese New Year. Mass-market tables and slots were down 64% year/year and VIP win fell 76%. Still, that’s a big improvement from 3Q20, when business was negligible. Greff pegs 3Q21 as the time Macao will come back. He recommended buying Macao-centric stocks, citing Melco Resorts & Entertainment, as well as “fatigue” about the pace of Macao’s comeback and that they are “under-owned in general.”
Continue reading Life after Adelson; Super Bowl odds revealedLouisiana doldrums; Philadelphia Live sparkles
Does reporting bad news get tedious? You bet! But it comes with the turf. Louisiana casino winnings declined 23% last month, in keeping with the national average. Penn National Gaming casinos got off easiest, slipping 11%, while Boyd Gaming ones tumbled 25% and Caesars Entertainment plunged 38%. The latter wasn’t helped by the continued closure of Isle Grand Palais, a hurricane victim. The statewide gross was $162 million. Capacity limits (50%) and reductions in gaming positions (-75%) remain severe, though a larger economic malaise appears to be in play.
Baton Rouge got off by far the easiest, down 7%, led by L’Auberge Baton Rouge (pictured) with $12.5 million, a 1% gain. Casino Rouge was 11.5% off the pace at $4 million, while ancient Belle of Baton Rouge deservedly plummeted 44% to $1 million. In Lake Charles, market share was best defended by Golden Nugget, grossing $24 million and down 8%. L’Auberge Lake Charles slid 19.5% to $23 million and Delta Downs shed 18% to $12 million. New Orleans suffered the most of any market, with Harrah’s New Orleans emaciated 37.5% to $16.5 million. Runner-up was Boomtown New Orleans, down 14.5% to $8 million, while Treasure Chest notched $6 million, a 28% spill, and Fair Grounds racino eked out $2.5 million, a 33% dive. Amelia Belle scraped up $2 million, down 32.5%.
Continue reading Louisiana doldrums; Philadelphia Live sparklesAdelson rolling in grave; Police blotter
It’s a good thing Sheldon Adelson didn’t live to see this. The First Circuit Court of Appeals quashed a 2019 reinterpretation of the Federal Wire Act by the Justice Department, one that broadly applied it to Internet gambling. The federal court agreed with a New Hampshire one that the Office of Legal Counsel had erred and that the Wire Act only applies to interstate sports betting. The case had been brought by the New Hampshire Lottery “We find the plaintiffs’ claims are justiciable and that the Wire Act applies only to interstate wire communication related to sports events or contests,” sayeth the court. Unless the Joseph Biden administration pursues this to the Supreme Court (highly unlikely), Eric Holder‘s narrow, 2011 interpretation of the Act will stand. In other words, the First Circuit has driven a stake through the heart of the anti-Internet-gaming movement, or what’s left of it.
Were Adelson still around and the First Circuit had upheld the 2019 revision, he wound have found himself in an awkward position. Earlier this week, ace reporter James Rutherford revealed that Las Vegas Sands “was in discussions with potential partners to enter the sports betting business, a move that would take the company down the internet gambling path which Adelson so vehemently opposed.” That would make Adelson even more of a pious fraud than he already was on the Internet issue. It’s a disservice to Sands shareholders that the company has missed the online-sports-betting boat, although it’s in no position to capitalize i-gaming, not after having quit Pennsylvania.
Icahn saves Trump Dump; Disaster in Pennsylvania
Carl Icahn‘s abusive-codependent attachment to Trump Plaza knows no ends. In his latest gambit, the magnate has kiboshed the implosion of the ramshackle ex-casino that had been slated for sometime in February, by dint of obtaining a cease-and-desist order. Instead, dismantling of the crumbling relic will continue at a stately pace, with plans for the site still unknown. At least Icahn, who has repeatedly embarrassed Atlantic City, showed some grace this time. He short-circuited Mayor Marty Small‘s auction of the demolition rights by matching the leading bid—$175,000—and donating it to the Boys & Girls Clubs of Atlantic City. Our sincere thanks for that, Uncle Carl. “From the beginning, we thought the auction and any other related spectacle presented a safety risk, and we were always clear we did not want to participate in any way,” said an Icahn mouthpiece. Opined The Press of Atlantic City, “We hope this happy ending opens the way for redevelopment of the Plaza site for the benefit of all.” We hope so too.
Continue reading Icahn saves Trump Dump; Disaster in PennsylvaniaMassachusetts hit hard; NFL playoffs a tossup
Between Covid-19 capacity restrictions (33%) and statewide curfews (9:30 p.m., when the night owls are just getting rolling), Massachusetts casinos were between a rock and a hard place last month, with revenues falling 40% to a meager $50 million. If there was a silver lining for anybody, it was at Plainridge Park, whose slots collected an above-average win/slot/day of $247 and whose market share was 18%, closing the gap with MGM Springfield‘s 23%. Encore Boston Harbor remained dominant with 59%. Encore revenue plummeted 46% to $29 million, MGM made $11.5 million (-40%) and Plainridge Park won $9.5 million, only 10% off the pace on 10% less coin-in. (They must have some pretty loyal customers.) MGM saw 33% less slot handle (an anemic $118/win/slot/day) and a disastrous 60% plunge in table game revenue. Where JP Morgan analyst Joseph Greff had predicted a 15% decline in the fourth quarter, MGM delivered -34%.
At Encore, it was the opposite story. Greff expected a 50% 4Q20 decline and Encore managed -34%, a victory of sorts we suppose. Slot handle fell 29% and so did revenue from the one-armed bandits. Table game win was $2,972/table/day (contrast that to MGM’s $543). But even tightening the hold on the slots didn’t help that department. Plainridge Park is obviously doing things right, Encore somewhat the same but a serious rethink of MGM’s gaming product appears in order. Connecticut tribes who feared competition from Springfield can sleep easily at night.
Continue reading Massachusetts hit hard; NFL playoffs a tossupFlynt winning in California; Caesars S.I. to Cherokee?
Larry Flynt continues to be the de facto leader of California‘s card room industry. He’s fighting in court against a Golden State law that prevents card room owners from holding stakes in out-of-state casinos. (Flynt in Las Vegas? Imagine!) When Gov. Gavin Newsom‘s administration moved to dismiss Flynt’s suit, Judge John Mendez said ‘No.’ He also indicated that the law could contravene the interstate-commerce clause of the U.S. Constitution. Flynt has been waging this battle since 2016. He co-owns two card rooms, Hustler Casino (what else?) and Lady Luck, both in Commerce. The law Flynt is trying to overthrow was enacted in 1986, in an attempt to keep Mob influence out of California’s gaming industry. If so much as one slot machine went into Flynt’s Vegas-area strip club, he’d either have to sell the club or his card rooms. For Flynt, that is Sophie’s Choice.
Continue reading Flynt winning in California; Caesars S.I. to Cherokee?Wynn, loopy attorney in legal feud; Philly goes Live
Steve Wynn is back in the news again. His former attorney, L. Lin Wood, is suing Wynn for alleged defamation, the ex-casino mogul supposedly having told Donald Trump that Wood was several fries short of a Happy Meal. The falling out between Wood and Wynn came after a charity dinner, at which Wood extolled the superior virtues of Christianity to Wynn, a Buddhist by way of Judaism. Before that, Wynn was happy to have Wood doing his dirty work, whether it was trying to muzzle an attorney for victims of Wynn’s sexual harassment or sweeping aforesaid misconduct under the rug. Of one sexual assault Wynn said churlishly, blaming the victim, “Anybody who is over 10 years old and knows what goes on in the world knows what happens next. Along comes this gal who had a turn with me, obviously being advised on what to do. So, in this context, $7.5 million was not a significant number. And I paid it.”
As for Wood’s sanity, judge for yourself. He was banned from Twitter for calling for Vice President Mike Pence‘s execution by firing squad. He’s shilled for QAnon. He has insinuated that Supreme Court Chief Justice John Roberts is both a pedophile and somehow complicit in the death of Justice Antonin Scalia. Oh, and sex-abuser Jeffrey Epstein is alive and thriving. A Delaware judge recently ruled that Wood’s in-court behavior “exhibited a toxic stew of mendacity, prevarication, and surprising incompetence.” And this is who Steve Wynn chose to handle his legal affairs? Pardon us but we don’t have a dog in this fight.
Chilly in Atlantic City, deep freeze in Detroit; Siegfried, R.I.P.
Casino revenues in Atlantic City plunged 29% last month. “Results for the month reflect the negative impact of higher new COVID-19 cases in recent weeks, capacity limits and restrictions on F&B offerings, similar to other regional markets,” writes JP Morgan analyst Joseph Greff. The gross was $147 million, with slot revenues plummeting 34.5% and tables down 17%. As we’ll get to momentarily, there was some compensatory news on the cyber front, with i-gaming revenues shooting 102% higher than last year and sports betting skyrocketing 126%. As PlayUSA analyst Dustin Gouker put it, “The pandemic has had a diametrically opposite effect on New Jersey’s online and retail markets for both sports betting and casino games. But the growth of online betting was crucial in making up for at least some of the losses in revenue at Atlantic City casinos and certainly continue to steady the entire gaming industry.” But on to the brick-and-mortar stuff …
Borgata fell 28% $39.5 million as slots were down 31% and tables 28%. The Caesars Entertainment trio collapsed 41% on 46% less slot win, and tables were down 23%. Bally Corp. had a rough first month at its new, eponymous casino, spiraling 45% downward to $7 million. Caesars Atlantic City slipped 23% to $14 million, Harrah’s Resort was a calamitous -53% for $12 million and Tropicana Atlantic City dove 42% to $13.5 million. Only Hard Rock Atlantic City was revenue-positive, up 2% to $26 million. Ocean Resort stumbled 9% to $19 million, Resorts Atlantic City plummeted 42% to $7 million and Golden Nugget slid 43% to $8 million.