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Under Southern skies; Presidential casino players

Photo: Courtesy of Shutterstock

Truist Securities analyst Barry Jonas took a swing through Dixie casinos last month and had quite a bit to report. He hit the New Orleans, Lake Charles, Baton Rouge and Biloxi markets, his primary takeaway being that operators are consistent and resilient, and the macroeconomic impact “has been limited.” Horseshoe Lake Charles is reported to be growing that market, whilst impacting incumbent operators “less than we feared” (as already noted in these pages). As for macroeconomic impact, “The only notable softness appears to be with more value-oriented, lower-to mid-tier customers in select (but not all) markets.” Jonas partly blamed said softness on lower tax refunds (-11%) this year. He “also heard enthusiasm over social security cost of living increases and higher interest rates on savings flowing to discretionary spend for the older demographic.”

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MGM owns Ohio; NY Lege owns sports books; Texas jolt

Ohio casino tallies jumped 10% last month, hitting $197 million. It was a decisive win for MGM Northfield Park, which outstripped the competition by grossing $25.5 million, an impressive feat for a casino with *no* table games. Jack Cleveland continues to surge, hitting $23 million (+13%) and surpassing the two Penn Entertainment casinos, so dominant for so long. Hollywood Columbus climbed 16% to reach $21.5 million and Hollywood Toledo nudged up 2.5% to gross $18.5 million. The last of the non-racino properties, Hard Rock Cincinnati, was up 6.5% to $20 million. The heat-up of Jack Cleveland didn’t hurt Jack Thistledown‘s cause, as the racino hopped 8% to $15.5 million. Scioto Downs grossed $20 million, an 11% leap, while Miami Valley Gaming delivered $20 million for co-owner Churchill Downs, a 14% vault. Belterra Park hung in there with $7 million (+2.5%), whilst Hollywood Dayton was up 8.5% to $13 million and perennial overachiever Hollywood Mahoning Valley netted $13.5 million in an 8% hop. As you’ve undoubtedly noticed, no one was revenue-negative, praise be.

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Bobby Vegas: The Downtown Grand Really Is Grand

For me, the Downtown Grand is the exception to my rule, “Stay where you want to stay, play where you want to play.” Though I don’t play for comps — I scout for the best games and take all comps offered, but don’t want to be obligated to play four hours a day for a $100 room — I find so much value at DG that I play there because I want to stay there.

What’s so grand about the Grand ?

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Crime and punishment

Former casino overlord Donald Trump is monopolizing the headlines today but let’s not let him have all the fun. There’s plenty of other gaming-related news today. First and foremost, in the same week that Nashville has seen the latest in an endless series of mass shootings, our attention is drawn back to the Mandalay Bay Massacre, one of the worst. Seemingly every news outlet in the country has gotten ahold of the FBI report on shooter Stephen Paddock. Even though Paddock cased possible shooting sites from San Francisco to Boston, the G-men put down his Las Vegas outburst to a fit of pique. (Kudos to the Wall Street Journal for getting the feds to give up the goods.) A witness told G-Men that “was not treating Paddock well because a player of his status should have been in a higher floor in a penthouse suite.” Yup, that’ll really cause people to go postal. Happens every day.

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Atlantic City dispatches; Sports betting meltdown?

Our East Coast correspondent had a good experience at Ocean Casino Resort last weekend. It started with no line at the “Prime” players-club check-in … although it was a quite a different (and worse) story if you fell into a lower player tier. Ocean rewards guests who “go green” (i.e., opt out of maid service) with a $20 F&B credit. “So our Saturday morning breakfast sandwiches were a few cents short of free. When we checked out, our balance due was $0.26 total. The employee asked if he should use ‘comps’ for the balance, but I paid cash.” Incidentally, Bart Blatstein holds several vacant lots in Ocean’s vicinty, but has announced no plans for them.

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Time to Be a Good Samaritan?

This blog suggestion was sent to me by a friend, “Al.” It happened at a casino somewhere in the Mid-West. I honestly don’t know where exactly.

Al was playing video poker near a bank of Quick Quad machines that weren’t very popular. Possibly players knew how to play the machines and avoided them because they had lousy pay schedules, or maybe they just didn’t know how to play. I don’t know. I haven’t seen them. (If you’re in the latter boat, you can get a free copy of “Quick Guide to Quick Quads” on www.videopoker.com.”)

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Big month for Strip; Miller’s rapid response; Titus time

Gambling grosses were ultra-boffo on the Las Vegas Strip last month, up 19% over the year previous and leaving 2019 in the dust, +25%. Locals casinos didn’t fare too badly, either if not as spectacularly as their Strip brethren: up 4.5%. Strip casinos went “Kaboom!” with $712.5 million in the bank. Strip slots were tight, as 11% more coin-in yielded 16% greater casino win, for $390.5 million. Table game players also played poorly, luck being with the house to the tune of $223 million, an 11% improvement on flat wagering. Baccarat was back with a vengeance, as 20% more was played and the house took whales to the cleaners, to the tune of a 59.5% improvement in win, despite looser-than-usual hold.

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Tilman keeps his cool; New Jersey woes; Mega-Jottings

Don’t hold your breath if you’re waiting for Tilman Fertitta to break ground on what will probably be a Post Oak Hotel on the Las Vegas Strip. The mogul is keeping his powder dry, or as Truist Securities analyst Barry Jonas summarized him, “No firm start date has been set, and management is willing to wait for clarity on economic conditions.” That could be a long wait. Already Fertitta’s high-end-dining business is softening, though Tilman expects his Joe Sixpack customers to be most affected by any economic downturn. And if you were wondering whether Tilman would expend any of his considerable political capital on behalf of Texas casino legalization, the answer appears to be no. Fertitta kept mum on the subject, beyond saying that Texas tribal casinos wouldn’t hurt his Lake Charles business, which hardly comes as a shocking analysis.

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Splurging in Vegas

I don’t know about you, but I built up a lot of unrequited Vegas energy during the pandemic. I also saved a lot of money by not paying for plane fares, hotel rooms, restaurant meals, shows tickets, drink tabs, Raiders seats, and gambling during the 2-1/2 years that COVID kept me away from the Promised Land. For a guy who visited Las Vegas three or four times a year for a week at a time, I was in severe withdrawal.

My first trip back to Vegas was in June 2022 and I went all out. Vegas is a great place for a nice splurge for any reason under the sun, so here are some things you might want to consider treating yourself to.

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