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.
Said the MGC’s responsible-gaming czar, Mark Vander Linden, “if we know that individuals in lower socioeconomic groups, or there are specific groups that are at greater risk, we should take a look at what factors may exist within the community that we can have an influence over.” He added that so far the commission has taken its lead from the best practices promulgated by the American Gaming Association. “Last night when we were watching a baseball game, DraftKings was on every single inning down in the right-hand corner,” grumbled one commissioner. “And they pushed it and pushed it and pushed it, every single inning that we watched of the game last night.” Vander Linden responded by endorsing a “whistle-to-whistle” ad ban such as that in the United Kingdom. Massachusetts is more aggressive than any other state in trying to discourage disordered gambling so when regulators talk about an ad ban, the gaming industry should pay serious attention.
Deutsche Bank analysts met with Golden Entertainment executives during G2E week and saw “another solid quarter on the horizon.” As such, they bumped their price target up to $60/share. They reported that 4Q21 was “off to a strong start,” particularly in Las Vegas and Laughlin, Golden’s prime markets. These July-like numbers were “helped primarily by stronger event schedules and healthy occupancies/bookings.” Spending by locals was leveling off but still strong. The Wall Street boffins also liked Golden’s real estate portfolio “in this M&A rich market, [as well as] the potential for a special dividend and/or share buybacks, given the balance sheet and free cash flow profiles.”
There’s a new look at Bally’s Atlantic City and it sounds like fresh ownership was just what the doctor ordered. As our Atlantic City correspondent reports, “On Thursday we went to Bally’s for their $50 gift card, followed by Hard Rock for the player lounge food and some gambling. Bally’s had ‘moderate’ attendance. Their gift card included the choice of ShopRite supermarket. On Friday we went back to Bally’s for another $50 ShopRite gift card, then to Golden Nugget. Both had decent/good attendance. Today, Sunday, as Darlene said: it’s f….nuts! Bally’s gave her $75 slot play and it was quite crowded. When we tried to go Hard Rock, the valet parking was full and closed to new customers (which typically only happens on a summer Saturday night with entertainment in both the large and small venues). I had to drop her off to pick up her gift and wait nearby at Hard Rock’s gasoline station (where someone parked their Maserati rather than use self-parking). She said there were few slot machines available, got her gift and left.
“We went to Golden Nugget for their player lounge food and gaming. I won a little at both casinos. Darlene was nice enough to give Golden Nugget back the money she won two weeks ago. Bally’s has started doing work: They painted the exterior of the 1903 Dennis Tower sand color, which replaced the ‘old Caesars’ circus tent colors. They upgraded the hotel check-in area and will soon open a new, high-limit, Asian gaming area. The photo is from Bally’s 6th floor restaurant/meeting room level looking down to the 3rd floor casino level on (not busy) Thursday.”
Jottings: Even though it has already picked MGM Resorts International to be its casino developer, Osaka says its resort plan won’t be ready until year’s end. Yawn … Tribal Paragon Casino Resort had the honor of being the first in Louisiana to go live with sports betting. Congratulations … While Las Vegas Sands continues to beat its head against the brick wall that is Texas, a 10-company coalition is descending upon Georgia, hoping at the very least for OSB during the next session of the Lege. Better still, they’d like a combination of sports betting, horse racing and (of course) casinos. However, the odds are still considered quite long … Caesars Sportsbook is putting in a poor showing in Illinois. August handle numbers gave it only a 1.5% share, outpointed by DraftKings (38.5%), FanDuel (29%), BetRivers (17%), PointsBet (7%) and even Barstool Sports (7%). Operators made $27 million in revenue on $400 million of handle.
Quote of the Day: “It’s extremely quiet on the ground here. I did floor walks through a couple of Cotai casinos the past couple of days, and the number of players in each of them are no more than low- to mid-teens.”—iGamX analyst Ben Lee, describing Macao during a Covid-depleted Golden Week.
The Dennis tower had been painted more wild colors to match and be more associated the Wild Wild west when it was part of Ballys. Now that the WWW is part of Caesars, it made sense for them to make it a regal looking hotel again. I have never found a reason to visit Ballys, in particular, but I will be shortly to check out their new food venues; one of which (Water Dog) is outstanding!
And the Ballys tower is all pink again! Bravo to them.