While the American economy overall may be a disappointment for some, Big Gaming has nothing of which to complain. Indiana is coming off another bully month, up 16% from 2019, for an overall gross of $201 million, driven in no small part by new Hard Rock Gary. It pulled in $29.5 million. Not to be outdone, Horseshoe Hammond won $33 million, albeit 4% off its 2019 pace. Ameristar East Chicago gained 24% but remained a solid third with $21 million. Blue Chip slipped 7.5% to $12 million. Elsewhere the numbers were good for almost everyone, although “everyone” wouldn’t include French Lick Resort, going down 15% to $6.5 million. Rising Star also set, -10% to $4 million.

All other casinos and racinos were revenue-positive, such as Indiana Grand, up 13% to $23.5 million, while Hoosier Downs cantered +17% to $18.5 million. Caesars Southern Indiana, now under Cherokee management, didn’t miss a step either, up 16% to $19.5 million. Tropicana Evansville was remotely in this league, with $13 million, an 11.5% gain, and although Hollywood Lawrenceburg only budged +1.5% that was good enough for $13.5 million. Belterra Resort nudged +3.5% to $8 million, rounding out the southern tier.

Continue reading Indiana wins big, Missouri too; Pennsylvania guv blows smoke

In a development that portends nothing but ill for Atlantic City, the CEO of Ocean Casino Resort, Terry Glebocki has resigned. She also leaves the Casino Association of New Jersey rudderless, no doubt to be replaced in both roles by someone safely white and male. No reason was given for Glebocki’s sudden departure, which was disclosed to staff yesterday morning. Frankly, we’d been fearing such news ever since Marian Illitch bought a half-interest in the casino. While Luxor Capital nominally owns the keys to Ocean, Glebocki was their gal and we don’t see them as the ones giving her the shove. The former CFO of Ocean, née Revel, Glebocki had held the top spot for two years, ones in which the casino’s fortunes dramatically reversed, with results that have been getting better and better with each passing month. Now … uncertainty and unease.

Continue reading Disaster at Ocean; Ready when you are, CB; Gruden gone

Exhibitors are folding their tents and weary journalists are packing it in as another Global Gaming Expo draws to a close, having kicked off inauspiciously with an anti-vaccine riot by “Covidiots” at The Cosmopolitan of Las Vegas. Looking back on the show, Truist Securities analyst Barry Jonas reported that attendance was less than 50% of previous expos (the absence of the international cohort didn’t help). Still, he saw enthusiasm, particularly from Las Vegas hoteliers, whose rooms and gambling floors were “packed.” Manufacturers had cause for optimism, too, as upward trends in gross gaming revenue gave them hope that casinos would loosen their purse strings and buy new machines next year. Interest in interactive gaming was described as a “feeding frenzy.” Revenue comparisons will get tougher next year, Jonas continued, and labor continues to be an issue (which we note is largely one of management’s own making). Also, promotional spending on sports betting is “unsustainable” and “leading to questions about a shakeout and more consolidation.”

Continue reading G2E, The morning after: Guarded optimism

Las Vegas Strip room rates continue to demonstrate sustained strength through October and, get this, midweek traffic is driving the bus. Overall, weekday prices are up 22% versus 17% on weekends. MGM Resorts International is the pace car, +24% midweek and up 10% on the weekend for the Oct. 24-30 period. Caesars Entertainment is up 17% midweek and 24% on weekends, while Wynncore is surging 23% on weekdays but surprisingly off a point on the weekend. Another surprise is that Venelazzo is, compared to 2019, almost flat midweek, up just 2% but recoups that on the weekend, hopping 40%.

Analyst Joseph Greff and his JP Morgan colleagues recently studied the travel industry and were able to confirm that a recovery is underway but were unable to nail down a consensus for when it would leave the launch pad. Greff’s bottom line was “business travel restarts will occur over the next few quarters with a spike in 1Q22.” A plus for hoteliers: Room rates will drift upward after the pandemic. Not so good: Technological changes (as in virtual meetings) are here to stay. Not coincidentally, travel budgets for 2022 will be lower than expected. Resorts World Las Vegas can rejoice in the news that Hilton Hotels “was the clear favorite to gain share post-pandemic, surprising to us given the lopsidedness of the results.”

Continue reading Business comeback fuels Strip; Massachusetts fumbles sports betting