Contrary to Wall Street’s expectations, gambling revenues on the Las Vegas Strip dropped 4% last month. The $686 million haul was depressed by 4.5% lower coin-in at the slots, despite tight hold (9%). Table games fared even worse, with a -17% trend in wagering (baccarat excluded) driving a -20% plunge in casino winnings. Baccarat play plummeted 31.5% but luck was with the house, which saw only a 7.5% decline in win. Contrarily, locals-casinos blossomed, their revenue up 4.5%, propelled by Durango Resort, which continues to do boffo business. Slot revenue of $239.5 million was up 5.5% while table win ($46 million) was flat. Compared to the once-halcyon days of 2019, the Strip was up 29% and locals joints were 31% higher. The January numbers may be somewhat misleading, as end-of-December slot winnings got rolled into the next month (due to a Nevada reporting oddity); making locals numbers look even better and Strip ones marginally less worse.
Downtown ($86 million) was up a point, the Boulder Strip ($93.5 million) slipped 3% and North Las Vegas ($22.5 million) slid 6%. But miscellaneous Clark County, which includes Durango, shot up 11% to $169 million. Laughlin hopped 4% to $44.5 million, Reno vaulted 55% to $65.5 million and Lake Tahoe jumped 5% to $18 million. The border towns sent mixed signals, with Mesquite being flat at $16 million and reliable Wendover tumbling 7% to $19.5 million. What ailed thee, Wendover?
God forbid that the voters of Alabama should get to have their say on gambling expansion in that state. Because we’re pretty certain which way the plebiscite would go, driving some right-wingers to try and smother a referendum in the legislative cradle. State Sen. Greg Albritton (R), nominal sponsor of the expansion bill, panicked and pulled it after a committee hearing described as “odd.” A cabal of GOPers is trying to cobble enough votes together to put forward their own bills, sidelining Dems and containing a poison pill: State proceeds from gambling could not be spent on health care.
Meanwhile, Albritton’s hearing was held in virtual secrecy and while no vote on the expansive House legislation was held, opponents used the occasion to bluster at length. Two diluted, fatherless versions of the House bills are being covertly shopped around the upper chamber, Alabama Reflector was told. “All I know is yesterday they came forward with a one sheet of paper with concepts,” Albritton groused.
“It’s all a big scam,” one anonymous solon told Alabama Political Reporter. “They know that even if they pass it, the House won’t allow it, because they need the Democrats in the House to get it passed. But that gives these guys cover to kill a bill that 90% of the state wants. The people have been loud and clear that they want to vote on this, but these guys want you to know that they know better than the voters.” Indeed, Albritton accused senatorial Republicans of negotiating in bad faith, not intending to actually support any compromise achieved. (Sound familiar?)
It looked like a comprehensive package of 10 casinos (including some grandfathering), a lottery and sports betting was headed through committe. Then Gov. Kay Ivey (R) evidently blundered into the fray and legal complications also arose. Alluding to the general public, one fed-up Republican fumed, “They’ve told us they want to vote on this. We all know the reality of gambling in this state and why certain things aren’t an option, even if we’d like them to be. So this is a ploy by some members to serve special interests instead of the people.”
Even though the House bills are fairly George to the Poarch Band of Creek Indians, including juicing them into a casino on the Georgia state line, the tribe is opposing them at present. It wants the right of last bid on casino licenses and a strict time frame for compact talks. Nor is former governor Don Siegelman (D) on board, since he does not think enough tax money will be dedicated to education. Given Georgia’s inaction on gambling legalization (sports betting excepted), do not expect the Alabama Lege to feel any sense of urgency.
Jottings: In a $6.2 billion merger, International Game Technology will be folded into Everi Holdings, with the combined companies renamed—wait for it—IGT. One analyst called the deal “formidable,” even though it will tie both companies’ hands for the rest of the year … Work on the permanent WarHorse Casino in Nebraska continues apace and then some. The facility should be ready to see action this August … There must not be much to do in Michigan when it’s cold and dark. How else to explain how the state has powered past New Jersey to lead the nation in Internet-casino play? Online gambling has surpassed $1.9 billion in 2023 … Muckleshoot Casino has debuted a new, 401-room hotel. Suites contain HDTV sets that start at 65 inches. Color us impressed … There’s an executive shakeup coming at Melco Resorts & Entertainment, according to J.P. Morgan analyst Joseph Greff. He writes that the company “is taking steps to change out senior Macau personnel to improve market share and get better lift from its relatively new offerings” due to “lagging performance.” He says Melco casinos didn’t keep up with the rest of the Macanese market during Chinese New Year.