Gambling win in Massachusetts shot up 14.5% in February, reaching $98 million. Market leader, of course, was Encore Boston Harbor with $63 million (+14.5%). MGM Springfield leapt 17% to $23 million and Plainridge Park climbed 10% to $12 million. Wynn Resorts, Penn Entertainment and MGM Resorts International were among the companies represented at the J.P. Morgan Gaming & Lodging Forum and you can read our takes on most of them at CDC Gaming Reports. As for the others …
I’ve written two recent blogs about a drawing in Reno that was supposed to take place in early March. It was cancelled due to weather, and re-scheduled for the end of June, nearly four months later. Normally writing continually about a promotion that is of interest to a relatively small percentage of my readers doesn’t make sense. But this time, several of you asked me how this change would affect my “go-or-not-go” calculus. So, I’m writing again.
Maryland aside, gambling revenues continue to trend upward. Even in Iowa, where they nudged only 1% higher from last year (undoubtedly due to new competition from Nebraska) but were high heavens (+38%) over 2019, aka the good old days. Indiana’s gain was also a modest 1% from 2022 for a $199 million haul. Hard Rock Northern Indiana surged 9% to $34.5 million, while Horseshoe Hammond‘s decline slowed to 1.5%, bagging $28 million. Ameristar East Chicago slid 8% to $16.5 million and Blue Chip was up 4.5% to $11 million. To the south, Horseshoe Indianapolis galloped 8% faster, winning $26 million, while Harrah’s Hoosier Downs cantered +1.5% to $17.5 million.
Best of the non-racinos (other than Horseshoe Hammond) was Caesars Southern Indiana, grossing $21.5 million for a 9.5% gain. Bally’s Evansville peaked at $14 million and a couple of its competitors got hit hard. Rising Star fell 20.5% to $3 million and Hollywood Lawrenceburg tumbled 14% to $13 million. Belterra Resort rounded out the unfortunates, down 7.5% to $6.5 million. French Lick Resort climbed 8.5% to $6.5 million, enabling us to end on a positive note.
This post is syndicated by the Las Vegas Advisor for the 888 casino group. Anthony Curtis comments on the 888 article introduced and linked to on this page.
A.C. says: This article addresses one of the most discussed topics relative to machine play: How does the random number generator (RNG) create results? While the fact is that it really doesn’t matter in terms of strategy considerations for players, the workings of the RNG have always been of major interest for one reason, which is how it affects the timing of jackpots. This article explains when the RNG stops and how that affects jackpots, bringing home the reality that when you walk away from a machine that immediately pays a jackpot to the next player, it almost certainly wouldn’t have hit for you had you played longer.
We tweeted after the opening of The Temporary at American Place (yes, that’s its cumbersome nomeclature) that it was “a hit.” We were wrong.
According to Full House Resorts CEO Dan Lee and CFO Lewis Fanger, The Temporary eked out just under $1.5 million in gaming revenues during its first two weeks of operation. (The State of Illinois says $3 million.) That’s $80 per gambler per day in the first week, $97 in the second, according to Lee. Full House is trying to spin these numbers as average for an Illinois casino. Trouble is, the company led us to believe The Temporary (and its eventual permanent successsor) would be above average, especially as it sits in prosperous Lake County, with outmoded, antediluvian riverboat casinos its nearest competitors. So you will forgive us if we are underwhelmed by its debut.
Stock boffins were treated to a fair amount of revisionist history by Full House. Now, for instance, opening without an Illinois database is realized to be a severe handicap. And we were told that Chicago denizens don’t drive to Lake County if they can help it. So why is Full House splurging on billboards along the expressway from downtown Chicago to O’Hare International Aiport? We’ve seen them.
In 2005, country music star Toby Keith released As Good as I Once Was, a wonderfully self-deprecating song about a guy reaching middle age and not being as good as he was in his prime. In a clever twist of words, Keith sings that he’s not as good as he once was, but he’s as good once as he ever was.
If you haven’t seen the video, check it out on YouTube. It’s cute.
February was moderately unkind to Maryland casinos, which were down 3.5% from last year to reach $157 million. Top-grosser of course was MGM National Harbor, flat at $65.5 million. Reliable runner-up Maryland Live was close behind at $56 million, but suffered a 6% drop. Horseshoe Baltimore faded 8% to $16 million, which seems to be the floor but also very near the ceiling for this casino. The only revenue-positive casino was Ocean Downs, up 4% to $7 million, so owner Churchill Downs knows something everyone else doesn’t. Hollywood Perryville slid 7% to $7 million and Rocky Gap Resort was down 3% to $5 million. Are we entering a cooling-off period? It’s still too soon to say.
After hanging out with CEO Tom Reeg and Senior Vice President of Finance Brian Agnew, analyst Joseph Greff of J.P. Morgan came away “upbeat” about Caesars Entertainment. His optimism centered on three salient points: “Las Vegas strength and momentum”; “a path towards meaningful profitability” for CZR’s digital assets; “appealing free cash flow generation.” In Sin City, Caesars appears to be making money hand over fist. Attrition in group bookings has fallen to pre-pandemic levels, ADRs are much higher (think double digits) and occupancies average 95% or so. Given the absence of such 2022 headwinds as high utility costs, Omicron and a good-but-not-great event calendar, 2023 looks as though it will be very good indeed, leading into the 2024 Super Bowl, whose benefits should be obvious.
Lest we should get all warm and fuzzy about Blackstone Group, second-largest landowner on the Las Vegas Strip, here’s a bracing reminder of how it got to be where it is today.
This post is syndicated by the Las Vegas Advisor for the 888 casino group. Anthony Curtis comments on the 888 article introduced and linked to on this page.
AC says: These are stories of big wins in blackjack, most by way of hitting some crazy side bet. When it comes to side bets, you hear about the big jackpots, but not the multitude of losses that make these bets so profitable for the house. They might be fun to play and there’s the allure of the big score, but blackjack side bets are often among the worst bets in the casino. Basic strategy: Don’t play them. LVA gets a name-check in this article. The author, Michael Kaplan, is working on a book for us tentatively titled The Advantage Players.
