See that guy? He’s the single most overpaid CEO in Big Gaming. We’re talking about Jay Snowden, helmsman of Penn Entertainment. As revealed by the Nevada Current, the Institute for Policy Studies and Inequality.org, Snowden makes 734X the median wage of a Penn employee, who must eke out a living on $36,322 a year. Snowden’s obscene pay packet? $26.6 million. Nor is he alone in robbing shareholders blind. Read on.
Continue reading Grinning Bandits
Assume you’re trying to figure out which casino to frequent in Las Vegas. You’ve heard that I’ve played at the South Point and have done well there. Does it follow that the South Point is a good place for you to play?
Some factors to consider:
I could extend this list, but you get the point. Even knowing I play there, there are things about my play that you do not know. I don’t publish exactly how much I play there, on which games, and why I’m playing certain promotions and avoiding others.
What prompted me to write this blog is that I recently read “You’re About to Make a Terrible Mistake,” by Olivier Sibony. This book uses behavioral economics concepts previously explored by authors such as Daniel Kahneman, Dan Ariely, Amos Tversky, Richard Thayler and others to examine mistakes made in business and how to avoid them.
One of the concepts that he spends a lot of time on is that it rarely makes sense to exactly copy what somebody else is doing. Circumstances are always a bit different when you’re trying to follow somebody else’s footprints. It’s usually better to do something similar, yet different.
While it was addressed in terms of Fortune 500 companies, I suggest it applies to video poker players as well — where each of us tries to manage our own gambling business. Those who take it beyond the strictly recreational level make decisions and actions aimed at trying to succeed.
So how should knowing thatI play at the South Point affect your decisions? Probably as a “check it out” type of deal. Even if you aren’t trying to copy me exactly, that fact that I find it a worthwhile place to play (or at least I did before they cut the slot club cash back rate) should indicate that there’s probably something worthwhile there.
As Las Vegas struggles, customers have been flocking to Atlantic City. It’s not a binary equation, obviously, but it does underscore the appeal of drive-in casinos in times of economic uncertainty. Day-tripping is on the ascent, long-haul travel not so much. Casino revenue hopped 4% on the Boardwalk in July, reaching $284 million. Those seeking to beat the heat stayed home and made iGaming a winner, shooting up 26.5% to $247 million. Sports betting was in a summer lull, with handle down 2% and revenue dipping 6.5%.
Continue reading Boardwalk Bliss; Dr. Doom
DeNile is the only river that runs through the Las Vegas Strip and casino bosses having been boating on it big-time of late. But when it comes to blowing sunshine up one’s own ass, there’s nobody better at it than Pollyanna-in-Chief Steve Hill, CEO of the Las Vegas Convention & Visitors Authority. He dumped an extra-large serving of bullshit on the plate of CDC Gaming‘s Buck Wargo last week and demanded that the public swallow it whole.
Continue reading Hill the Shill Returns
This week Anthony and Andrew talk jackpots, jackpots, and more jackpots!
See that fella? It’s certified Bad Guy Sen. Mike Crapo (R) and he’s grinning because he stuck it to you big time and looks to get away with it. To steal from Vital Vegas author Scott Roeben, Crapo has the perfect last name for someone who gleefully took a big, steaming dump on the gambling public. He’s the evil genius behind the OBBBA tax hike on gamblers, which got passed because most of Crapo’s colleagues were too clueless to study the bill … and because they were under heavy White House pressure to move the damn thing.
Continue reading Good Guys & Bad Guys
It’s been two days since Hollywood Joliet opened and the reviews are in. Suffice it to say that Wall Street is raving about what Penn Entertainment accomplished on a mere $185 million. (One analyst even likened the finished product to Durango Resort in terms of quality.) It will be October before we know how much of a sparkplug it will prove to be, but solid business should (thanks to superior access) solidify into something quite a bit more. After all, Joliet hasn’t seen a new casino in 30 years.
Continue reading Monitoring the Midwest
For decades, the Four Queens in downtown Las Vegas has had dollar single-line 10-7 Double Bonus. A few years ago, they cut the slot club in half on those games (leaving players with a 0.16% cash and 0.3125% comps), along with monthly mailers and promotions. Still, with a game that started at 100.17%, it was a decent play for dollars. It was the only single-line dollar game I still played.
A few months ago, they downgraded the last four 10/7 machines to unplayable pay schedules. The highest returning video poker games they have now are single-line quarter and fifty cent 9/6 Jacks or Better — with full slot club benefits meaning 0.3125% cash back and 0.625% comps. They still have mailers. They still have promotions. There are some advantage slots there and sometimes I can find one that is playable.
The thing is, I’ve been playing games for $25 up to $125 a hand for a long time. Switching to a game that requires $1.25 or $2.50 a hand to play really doesn’t float my boat. I’ve heard it said that for gambling to be interesting, it has to hurt when you lose. There is no reasonable loss at fifty cents or lower which will affect my bankroll or well-being at all.
So, will I still play there?
Yes, but not for the reason you might think.
At the current time, Bonnie and I together have more than $6,000 comp dollars, which can be used at either Four Queens or Binion’s, located catty-corner across Fremont from the Four Queens. Magnolia’s is a decent-enough coffee shop for when I’m downtown, and Hugo’s Cellar is an excellent old-fashioned steak house where we enjoy taking friends. There are a few other food options and they are building more.
If I quit playing for six months (or possibly it’s for one year), our comp dollars will evaporate. But so long as I continue to ti give them some play, the comp dollars will last until we use them up. So, I will continue to play some.
This summer, for example, you could play 400 points ($3,200 coin-in on video poker; half that on slots), and get $40 in free play. You could do this up to four times at Four Queens each month, and four times at Binion’s, where the best game is $1 8/5 Bonus. This is a 1.25% promotion, which is decent, but it’s for low stakes. I earned some of the bonuses for Bonnie and me in June and July, but not all four at each place. In August, I’ll be out of town for almost half the month, so I’ll probably do similarly.
Although we currently each earn $80 per month in free play, that amount could be reduced or even disappear because I’m not playing as much as I used to when they had dollar 10/7.
This is the one casino where I can say I’m not playing for the money — I’m playing for the comps. And it’s not so much to earn additional comps (which I will do to a minor degree), but mainly to retain the comps I earned previously.
Even if I give up gambling at the first of the year because of the new tax law, I’ll retain this play until the comps are gone — which could easily take three or more years.
Penn Entertainment opens its new, $185 million Hollywood Joliet tomorrow. It could use the boost. Land-based casinos continue to perform for Penn, despite CEO Jay Snowden‘s dubious competence. Its much-vaunted digital strategy is another matter. Online return on investment just got reduced 25%, meaning that Penn will lose $200 million on sports betting and iGaming this year, not a mere $160 million.
Continue reading No Hope for ESPN Bet?
While bigger rivals Caesars Entertainment and MGM Resorts International were spinning less-than-stellar results, Wynn Resorts actually had something to crow about in 2Q25. For thing, it hit record levels of cash flow at Wynncore. True, the company came in under where Wall Street had forecast it. But The Street was duly impressed with what Wynn delivered.
Continue reading Wynn Wins