Despite only grossing $7.5 million last month, Horseshoe Lake Charles was the difference between an unadjusted, 6% decline in gambling revenue for Louisiana and a same-store, 10% declivity (lagging prosperous 2019 by 4%). Even so, the country’s most adverse casino state was led by L’Auberge du Lac ($27 million, -13%), enjoying a temporary edge on Golden Nugget ($26 million, -18%), although Horseshoe is taking a big chomp out of both their backsides. Delta Downs didn’t get through unscathed, either, down 12% to $14 million. The reinvention of Harrah’s New Orleans into a Caesars continues slowly, very slowly, with the casino raking in $17.5 million in July, a 23% plunge. Nobody else seems to have picked up significant business, given that Treasure Chest was off 14% to $7 million and Boomtown New Orleans faded 13% to $9 million. Fair Grounds racino grossed $3 million (-14.5%), Amelia Belle did the same (-12.5%), whilst Evangeline Downs actually went 4% higher to $6.5 million. It’s good to see somebody improving in the Bayou State.
L’Auberge Baton Rouge held steady at $14.5 million, easily dominating Hollywood Baton Rouge ($4 million, -15%) and dowdy Belle of Baton Rouge ($1 million, -3.5%). The latter’s minor slip could be seen as an admission that the place has declined as much as it can. Shreveport/Bossier City saw comebacks by all properties save two. Longtime leader Margaritaville slid 8.5% to $16 million, putting it too close for Penn Entertainment‘s comfort to Horseshoe Bossier, resurgent to the tune of $15.5 million, a whopping 14.5% plus. Also, Boomtown Bossier tumbled 12.5% to $4 million. Newly smoky Sam’s Town Shreveport was up 3.5% to $4 million. Similar things could be said of Bally’s Shreveport, up 2% to $8 million. Maybe not the big comeback tobacco enablers were hoping for but a turnaround nonetheless. And losing the Caesars Entertainment affiliation isn’t hurting Louisiana Downs, leaping 16% to $3.5 million. Sports betting, while almost an afterthought, rustled up 18.5% on mercifully negligible promotional spending and handle of $135 million. Just thought you’d like to know.
Detroit casinos were flat last month, even as Hollywood Detroit continued to make inroads, vaulting 27.5% to $25 million. Its gains came mainly at the expense of MotorCity, which ceded 10% to hit $31.5 million. MGM Grand Detroit slipped a bit (-2.5%) but still came out comfortably on top with $50 million. Elsewhere in Michigan, Internet casinos rang up $154 million, led by BetMGM‘s $49 million. Also contending were DraftKings ($36 million), FanDuel ($30 million), BetRivers ($9 million), Caesars Sportsbook ($7 million), all-but-defunct WynnBet ($4 million) and freshly defunct Barstool Sportsbook ($3.5 million). Sports wagering handle of $201 million engendered a gross of $22.5 million. Promotional outlays subtracted $6 million. FanDuel prevailed with $9 million, followed by DraftKings ($5.5 million), BetMGM ($4 million) and Barstool ($1 million). Everyone else grossed negligible amounts.
Big Brother is back in the withered visage of Rep. Paul Tonko (D), who aims to be your daddy and protect you from sports betting advertising via a blanket, federal ban. This is one of the worst ideas we’ve heard in quite a while, to say nothing of a tremendous overreach by Washington, D.C. Fortunately, Tonko’s bill has so few cosponsors that it hasn’t made it out of committee. However, the 74-year-old solon is optimistic that things are trending in his direction. Lest we be in any doubt what we’re up against, Tonko would ban advertising of sports books “on any medium of electronic communication subject to the jurisdiction of the Federal Communications Commission.” That’s about as sweeping as it gets.
Said Tonko at a recent conclave, “This legislation would not in any way ban mobile sports betting. It is narrowly targeted at the predatory advertising that has coincided with a significant increase in gambling addiction.” That sounds like a distinction without a difference to us. He’s counting on the wishy-washy liberalism of the likes of Massachusetts Council on Gaming & Health Executive Director Marlene Warner, who wailed, “I’m not here to talk about whether we should have a prohibition or not—but what I’m talking about is what we should do with these ads.” With nincompoop friends like Warner who needs enemies? While Tonko’s genie is bottled up for the meantime there is no shortage of comparably bad ideas percolating in the present Congress. And while New Jersey has led the way in curbing excessive and reckless advertising, more states need to preempt Washington and take action, sooner rather than later.
The late Stanley Ho‘s casino empire, now known as SJM Holdings, may not be whistling past the graveyard but it’s warbling near the ICU. Thanks to a Macao governmental decree, SJM is having to carry the dead weight of 2,150 Chinese in the form of “redundant payroll.” These poor souls used to staff five defunct satellite casinos run by SJM. Now they’re excess baggage, kept on the payroll by a mixture of main force and the hope that the ramp-up of fugly (some things never change at SJM) Grand Lisboa Palace will create jobs for them. What’s the cost of this enforced philanthropy? $21.5 million a quarter. And it will get worse as SJM’s nine remaining satellites, already a serious drag on the bottom line, are phased out. The company has given itself two and a half years to “rationalize” labor costs, so expect a fair amount of red ink between now and then. How come? SJM is the only Macanese operator to be running a (substantially) higher operating cost now than prior to Covid-19. And SJM has the most superannuated casinos in the enclave, further cutting into its competitiveness—to say nothing of the weakest market share. SJM was juiced into the first casino tender, survived the second and may not be around for a third.